NEED HELP WITH FINALS...ATTACHED IS A WORD DOCUMENT WITH ALL THE QUESTIONS.
1. Customer profitability:
A) is reflected by gross margin.
B) are most accurately measured using traditional costing.
C) are most accurately measured using activity based costing.
D) are most accurately measured using a combination of traditional costing and activity based costing.
2. Staley company has 30 order operators with associated costs of $1,000,000 per year. Staley calculated that each operator worked about 2,000 hours per year. Allowing for time off, each operator provided about 1,600 or productive work per year. What is the rate per hour for each order entry employee?
A) $20.83 B) $28.83
3. The rate per hour of each order entry employee is $56.00 per hour. On average, it takes an order entry employee about 0.1 hour to enter the basic customer information for a manual customer order. In addition, manual orders require an operator to spend an additional 0.02 hour to enter each line item on the order. What is the order entry cost associated with a manual order with 10 line items? A) $0.30
4. The 80/20 rule:
A) finds that 80% of revenues are generated by the top 20% of the customers.
B) finds that 80% of profits are generated by the top 20% of the customers.
C) can be graphed as the whale curve.
D) finds that 80% of costs are generated by 20% of the customers. 5. The whale curve:
A) graphs sales verses customers.
B) graphs profits verses customers.
C) graphs the 80/20 rule.
D) finds that 80% of costs are generated by 20% of the customers. 6. Service companies:
A) focus more on customer costs and profitability than manufacturing companies.
B) are less customer driven than manufacturing companies..
C) have less variation in demand for organizational resources.
D) None of the above
7. Examining internal operations to see where the company can improve processes to lower costs of serving customers is an example of:
A) process improvements.
B) activity based pricing.
C) managing relationships.
D) the pricing waterfall.
8. Quality engineering costs are an example of:
A) prevention costs.
B) appraisal costs.
C) internal failure costs.
D) external failure costs.
9. Constraints from the theory of constraints may include:
A) the availability of direct materials in manufacturing.
B) linear square feet of display space for a retailer.
C) direct labor in the service industry.
D) All of the above are correct.
10. In ________, all similar equipment or functions are grouped together.
A) a process layout
B) a product layout
C) cellular manufacturing
D) just-in-time production
11. Characteristics of a process layout include:
A) continuous processing.
B) long production paths.
C) small amounts of inventory.
D) no work-in-process storage areas.
12. Lean manufacturing:
A) has a central philosophy that resource spending that does not add value must be eliminated.
B) defines value as any action or process for which the customer is willing to pay.
C) is derived from the Toyota Production System.
D) All of the above are correct.
13. The characteristic of a management accounting and control system that allows employees to customize applications for local decisions is referred to as being:
D) in control.
14. , The research development and engineering cycle of the total life-cycle concept which focuses on developing prototypes and production processes is the:
A) research, development, and engineering cycle.
B) manufacturing cycle.
C) product design stage.
D) product development stage.
15. The relevance of information in a MACS includes providing all of the following EXCEPT:
A) the most accurate information possible.
B) a global framework that can be applied uniquely to each division or unit.
C) feedback on performance measures in a timely fashion.
D) different costing methods for each division.
16. Concerns about target costing include all EXCEPT that:
A) attention may be diverted away from other company goals.
B) excessive pressure is put on suppliers.
C) development time may decrease.
D) burnout of design engineers occurs.
17) Target costing differs from traditional costing in all of the following ways EXCEPT:
A) target costing collects market research continually throughout the target costing process rather than as a single event.
B) target costing uses the total-life-cycle concept to minimize ownership costs.
C) traditional costing spends less time on product specification and design.
D) traditional costing uses cross-functional teams to guide the process.
18) Relevant costs for target costing include:
A) variable manufacturing costs.
B) variable manufacturing and variable nonmanufacturing costs.
C) all fixed costs.
D) all future costs, both variable and fixed.
19, Which BEST describes the control function in a management accounting and control system?
A) MACS seeks out areas that are out-of-control but not for corrective action.
B) MACS achieves cost reduction targets that are continually adjusted downward.
C) MACS guides and motivates employees to achieve organizational objectives.
D) MACS ensures performance standard goals are being met.
20. The five stages in the process of keeping an organization in control are:
A) planning, implementing, measuring, evaluating and correcting.
B) planning, executing, monitoring, evaluating and correcting.
C) budgeting, implementing, monitoring, evaluation and feedback.
D) budgeting, executing, measuring, feedback and evaluation.
21. The monitoring phase of the process of control in MACS focuses on:
A) research and development, design, manufacturing, marketing, and service.
B) comparing the planned level to current performance to identify discrepancies.
C) selecting measures to determine how well objectives are met
D) measuring the current level of performance.
22. Information is relevant in a MACS if:
A) it can be applied in a flexible manner.
B) it is inaccurate.
C) it is inconsistent.
D) it is late.
23. The contemporary management view of motivation, the ________ is based on initiatives to improve the quality of working life.
A) balanced scorecard
B) human resources model of motivation
C) scientific management school
D) results control system
24. A budget should/can do all of the following EXCEPT that it:
A) can help management allocate limited resources.
B) should be adjusted if new opportunities become available during the year.
C) should be prepared by managers from different functional areas working independently of each other.
D) can become the performance standard against which firms can compare the actual results.
The following information is need for questions 25 and 26.
For the next six months, Kurtz Company projects the following information (in units).
Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.
25. The production for July is projected to be:
A) 300 units.
B) 900 units.
C) 1,050 units.
D) 1,500 units.
26. The number of dealer units that will be produced and sold in September is:
A) 900 units.
B) 1,050 units.
C) 1,500 units.
D) 600 units.
The following information is need for questions 27 through 30.
The following information for the second quarter of 2011 pertains to Huffington Company:
• Cash is collected from customers in the following manner:
Month after sale
Month of the current sale
• 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
• Labor costs are 20% of purchases. Other operating costs are $45,000 per month (including $12,000 of depreciation). Both of these are paid in the month incurred.
•The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000.
•No loans outstanding on June 1.
27. How much cash will be collected from customers in June?
D) None of the above is correct.
28. How much cash will be paid to suppliers in June?
D) None of the above is correct.
29. How much cash will be disbursed for labor and operating costs in June?