ACCT434 Week 3 Cost Behavior Decision Making Quality Complete Solution

Question: #9290

ACCT-434 Week 3 Cost Behavior Decision Making Quality A++ Graded 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? Fixed cost within relevant range Variable Mixed Variable cost within relevant range 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? y = 1.80 + 400X y = 400 + 1.80X y = 2.20 + 1,000X y = 1.00 + 400X 3. Question : (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? Quantitative analysis Industrial engineering Account analysis Conference 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? $799,000 $1,017,000 $896,000 $799,000 5. Question : (TCO 4) The formal process of choosing among alternatives is known as a(n) prediction model. alternative model. decision model. relevant model. 6. Question : (TCO 4) When using the five-step decision process, which one of the following steps should be done last? Implementing the decision Evaluation and feedback Choose an alternative Obtain information 7. Question : (TCO 4) Sunk costs have future implications. are ignored when evaluating alternatives. are differential. are relevant. 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? $63 $135 $90 $72 9. Question : (TCO 5) Throughput contribution equals revenues minus operating costs. direct material costs of goods sold. direct material costs minus operating costs. direct material and direct labor costs. 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

Solution: #9327

ACCT-434 Week 3 Cost Behavior Decision Making Quality Graded

A+ Please look at the attach...