DEVRY ACCT 434 Week 3 Cost Behavior Decision Making Quality

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DEVRY ACCT 434 Week 3 Cost Behavior Decision
Making Quality

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• 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?

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• 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?

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• 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

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• 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