ACCT434 Week 3 Quiz

ACCT434 Week3 Quiz 1.Question :(TCO 3) Dougherty Company employs 20 individuals.  Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified? 2.Question :(TCO 3) For January, the cost components of a picture frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80 for assembly.  The assembly desk and tools cost $400.  A total of 1,000 frames is expected to be produced in the coming year.  What cost function best represents these costs? 3.Question :(TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? 4.Question :(TCO 3) Penny's TV and Appliance Store is a small company that has hired you to perform some management advisory services.  The following information pertains to 20X8 operations: Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager's salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000.  What are the estimated total costs if Penny's expects to sell 3,000 units next year? 5.Question :(TCO 4) The formal process of choosing among alternatives is known as a(n) 6.Question :(TCO 4) When using the five-step decision process, which one of the following steps should be done last? 7.Question :(TCO 4) Sunk costs 8.Question :(TCO 4) Northwoods Incorporated manufactures rustic furniture.  The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs.  The company has surplus capacity available.  It is Northwoods' policy to add a 50% markup to full costs.  A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.  Northwoods is invited to submit a bid to the hotel chain.  What is the lowest price per unit Northwoods should bid on this long-term order? 9.Question :(TCO 5) Throughput contribution equals revenues minus 10.Question :(TCO 5) A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and multiple machines.  One way the company can overcome the bottleneck is

ACCT434 Week 3 Quiz

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