GB519: Measurement and Decision Making unit 5 quiz

GB519: Measurement and Decision Making unit 5 quiz

Question # 00000889 Posted By: neil2103 Updated on: 09/09/2013 09:46 PM Due on: 09/10/2013
Subject Business Topic General Business Tutorials:
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1.During the sales life cycle, which is an example of what happens during the maturity phase? (Points : 2)





2.Which of the following is a common type of value engineering in which the performance and cost of each major function or feature of the product is examined? (Points : 2)






3.Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,150, of which $1,350 is fixed overhead. For December, the actual factory overhead cost was $3,800 for 840 actual DLHs, of which $1,300 was for fixed factory overhead. What was the fixed factory overhead spending variance for December? (Points : 2)






4.One important short-term goal for a company is to earn the projected operating income for the period. Attainment of this goal is measured by comparing the actual operating income to the: (Points : 2)






5.Which of the following are computer-based databases that include comprehensive information about the firm's cost drivers? (Points : 2)





6.An organization planned to use $82 of material per unit of output, but it actually used $80 per unit. During this period, the company planned to make 1,200 units, but actually produced only 1,000 units. The flexible budget amount for materials is: (Points : 2)





7.Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,150, of which $1,350 is fixed overhead. For December, the actual factory overhead cost was $3,800 for 840 actual DLHs, of which $1,300 was for fixed factory overhead. Under a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead spending variance for December? (Points : 2)






8.Henry Ford was an early pioneer in the use of: (Points : 2)





9._________________________ is an important first step in value engineering because it identifies critical consumer preferences that will define the product's desired functionality. (Points : 2)






10.A deviation from standard that occurs during operations as a result of operator errors is an example of a(n): (Points : 2)






11.If there is a 90 percent chance that an observed variance is random, the cost of conducting an investigation is $1,000, the cost to correct a variance if the investigation reveals a nonrandom cause, and the amount of loss a company expects to incur if it does not investigate a variance that had a nonrandom cause is $30,000, what is the expected cost of not investigating the variance? (Points : 2)






12.Which one of the following is the difference in direct material costs between the actual amount incurred and the total standard cost in the flexible budget for the units manufactured during the period? (Points : 2)






13.In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U. The total number of budgeted units reflected in the master budget for September was: (Points : 2)






14.Target cost can be defined as: (Points : 2)





15.The difference between the actual fixed overhead cost incurred during a period and the budgeted fixed overhead cost for the period is the: (Points : 2)






16.Which of the following is not a cost system proposed as an extension to ABC systems, with the overall goal of more accurately allocating manufacturing overhead costs to outputs? (Points : 2)





17.During the sales life cycle, which is an example of what happens during the introduction phase? (Points : 2)





18.Which of the following is not a plausible cause of a systematic variance? (Points : 2)






19.The sequence of phases in the product or service's life in the market - from the introduction of the product or service to the growth in sales and finally maturity, decline, and withdrawal from the market is the: (Points : 2)






20.Xero Company's standard factory overhead rate is $3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% of capacity is $3,150, of which $1,350 is fixed overhead. For December, the actual factory overhead cost was $3,800 for 840 actual DLHs, of which $1,300 was for fixed factory overhead. Assuming the use of a four-way breakdown (decomposition) of the total overhead variance, what is the variable factory overhead efficiency variance for December? (Points : 2)






21.Electronic Component Company is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" DVD player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 DVD players per year.
Irrespective of the competitor's price, what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced? (Points : 2)





22.An organization subject to intense competitive pressures would most likely use: (Points : 2)





23.If inventories in a business using a standard cost system are insignificant, the firm would be justified (in a practical sense) by disposing of variances each year: (Points : 2)






24.Which of the following statements about the standard variable factory overhead application rate is true? (Points : 2)






25.Which of the following is a common form of value engineering in which the design team prepares several possible designs of the product, each having similar features with different levels of performance and different costs? (Points : 2)





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  1. neil2103
    Tutorial # 00000751 Posted By: neil2103 Posted on: 09/09/2013 09:48 PM
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