QuizQuestion 1.1. (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? (Points : 3) Fixed cost within relevant range Variable Mixed Variable cost within relevant rangeQuestion 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 + 400XQuestion 3.3. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points : 3) Quantitative analysis Account analysis Conference Industrial engineeringQuestion 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 $18Question 5.5. (TCO 4) Feedback regarding previous actions may affect (Points : 3) implementation of the decision. future predictions. the decision model. All of the aboveQuestion 6.6. (TCO 4) For decision making, a listing of the relevant costs (Points : 3) will help the decision maker concentrate on the pertinent data. will only include future costs. will only include costs that differ among alternatives. All of the aboveQuestion 7.7. (TCO 4) A computer system installed last year is an example of a(n) (Points : 3) avoidable cost. differential cost. relevant cost. sunk cost.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 $7,200Question 9.9. (TCO 5) In the theory of constraints, the only direct costs are (Points : 3) direct material, direct labor, and variable overhead costs. investment costs. direct material. direct material and direct labor.Question 10.10. (TCO 5) Producing more non bottleneck output (Points : 3) allows for the maximization of overall contribution. creates less pressure for the bottleneck workstations. creates more inventory and increases throughput contribution. creates more inventory, but does not increase throughput contribution.
