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Question 1.1. (TCO 3) McDevitt Company employs six individuals.  Each is paid $12.50 per hour.  How would total costs of personnel be classified? (Points : 3)

        Fixed cost within relevant range         Variable         Mixed          Variable cost within relevant range

Question 2.2. (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?(Points : 3)

        y = 1.80 + 400X         y = 400 + 1.80X         y = 2.20 + 1,000X         y = 1.00 + 400X 

Question 3.3. (TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? (Points : 3)

        Quantitative analysis         Industrial engineering         Account analysis         Conference

Question 4.4. (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 20X2 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 was the variable cost per unit sold for 20X2? (Points : 3)

        $200         $339          $218         $18 

Question 5.5. (TCO 4) Feedback regarding previous actions may affect (Points : 3)

        implementation of the decision.         future predictions.         the decision model.         All of the above

Question 6.6. (TCO 4) When using the five-step decision process, which one of the following steps should be done first? (Points : 3)

        Implementing the decision         Evaluation and feedback         Identify problem         Choose an alternative

Question 7.7. (TCO 4) Sunk costs (Points : 3)

        have future implications.         are ignored when evaluating alternatives.         are differential.         are relevant.

Question 8.8. (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.  Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables.  What is the lowest price Northwoods should bid on this special order? (Points : 3)

        $6,300         $13,500          $9,000         $7,200

Question 9.9. (TCO 5) The theory of constraints is used for cost analysis when (Points : 3)

        a manufacturing company produces multiple products and uses multiple manufacturing facilities and/or machines.         using a long-term time horizon.         operating costs are assumed fixed.         All of the above

Question 10.10. (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 (Points : 3)

        eliminating idle time at the bottleneck operation.  Extra staffing at the bottleneck would be a possibility, particularly if numerous manual type tasks were involved.         concentrate on processing those parts or products that increase throughput contribution, not parts or products that remain in finished goods or spare parts inventories.         solicit the opinions of the factory workers for ideas as to how the design of the manufacturing process can be simplified.         All of the above