ACCT434 Final Exam

ACCT434 Final Exam

Author: Christine Farr


1. (TCO 1) A significant limitation of activity-based costing is the (Points : 5)
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)
3. (TCO 2)Fixed overhead costs include (Points : 5)
4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue ispresented 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)
5. (TCO 2)Budgeting provides all of the following except (Points : 5)
6. (TCO 3) The cost function y = 1,000 + 5X (Points : 5)
7. (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? (Points : 5)
8. (TCO 4)Sunk costs (Points : 5)
9. (TCO 5) Through put contribution equals revenues minus (Points : 5)
10. (TCO 5) Producing more nonbottleneck output (Points : 5)
11. (TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously? (Points : 5)
12. (TCO 6) Which of the following is a disadvantage of the physical-measuremethod of allocating joint costs? (Points : 5)
13. (TCO 7) Life-cyclecosting is the name given to (Points : 5)
14. (TCO 7) Each month, Haddon Company has $300,000 total manufacturingcosts (20% fixed) and $125,000 distribution and marketing costs (75% fixed). Haddon's monthly sales are $500,000.
The markup percentage on variable costs to arrive at the existing (target) selling price is
(Points : 5)
15. (TCO 8) The costs used in cost-based transfer prices (Points : 5)

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