Question Details

Week 8 Final Exam A+ Complete Solution complete solution correct answer key

Question posted by AskWilliam
  • Budget: $20 Normal
  • Subjects: Business | Ethnicity |
  • Due on 16 Jul, 2018 08:55:10
  • Asked on 16 Jul, 2018 08:55:10
  • Past Due (date has already expired)

Week 8 Final Exam A+ Complete Solution complete solution correct answer key

Week 8 - Final Exam complete solution correct answer key

Top of Form

 

Question 1.1. (TCO 1) A significant limitation of activity-based costing is the (Points : 5)

        attention given to indirect cost allocation.
        many necessary calculations.
        operations staff's attitude toward the accounting staff.
        use it makes of technology.

 

Question 2.2. (TCO 1) Ireland Company produces a special spray nozzle.  The budgeted indirect total cost of inserting the spray nozzle is $180,000.  The budgeted number of nozzles to be inserted is 80,000.  What is the budgeted indirect cost allocation rate for this activity? (Points : 5)

        $0.50
        $1.00
        $1.50
        $2.25

 

Question 3.3. (TCO 2) Fixed overhead costs include (Points : 5)

        the cost of sales commissions.
        property taxes paid on plant facilities.
        indirect materials.
        energy costs.

 

Question 4.4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table:

                                         February              March               April

              Cash Sales                    $160,000            $150,000         $120,000
             Credit Sales                      300,000             400,000           280,000
               Total Sales                    $460,000           $550,000          $400,000

Management estimates that 5% of credit sales are not collectible.  Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale.  Cost of purchases of inventory each month are 80% of the next month's projected total sales.  All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase.

Brenton's budgeted total cash receipts in April are

(Points : 5)

        $448,000.
        $414,500.
        $431,600.
        $328,000.

 

Question 5.5. (TCO 2) Budgeting provides all of the following except (Points : 5)

        a means to communicate the organization's short-term goals to its members.
        support for the management functions of planning and coordination.
        a means to anticipate problems.
        an ethical framework for decision making.

 

Question 6.6. (TCO 3) The cost function y = 1,000 + 5X (Points : 5)

        represents a fixed cost.
        is not a straight line.
        has an intercept of 1,000.
        has a slope coefficient of 1,000.

 

Question 7.7. (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? (Points : 5)

        Quantitative analysis method
        Industrial engineering method
        Account analysis method