Quiz 10 - [ACCT3104] MANAGERIAL COSTING AND CONTROL (ST...

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[ACCT3104] MANAGERIAL COSTING AND CONTROL (ST LUCIA AND IPSWICH). SEMESTER 2, 2008 (ACCT3104S_5860IPX) > ASSESSMENT > QUIZZES > TAKE ASSESSMENT: QUIZ 1 12TH EDN Take Assessment: quiz 1 12th edn Name quiz 1 12th edn Instructions Timed Assessment This Test has a 1 hour and 5 minute timer.The elapsed time appears at the top right of the window. A 1 minute warning will be displayed. Multiple Attempts This Test allows 3 attempts. This is attempt number 2. Force Completion This Test must be completed now.
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Question Completion Status: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Question 1 1 points Save Answer the following questions using the information below:
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Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit. If Konrade's Engine Company purchases 1,000 TE456 parts from the outside supplier per month, then its monthly operating income will:
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increas e by $2,000 decreas e by $85,00 0 decreas e by $3,000 increas e by $80,00 0 Question 2 1 points Save Sunk costs:
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are differe ntial are relevan t are ignored when evaluat ing alternat ives have future implica tions Question 3 1 points Save Answer the following questions using the information below: Frederick, Inc., is considering replacing a machine. The following data are available: Replacement Old MachineMachine
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Original cost $45,000 $35,000 Useful life in years 10 5 Current age in years 5 0 Book value $25,000 Disposal value now $8,000 Disposal value in 5 years 0 0 Annual cash operating costs $7,000 $4,000 Which of the data provided in the table is a sunk cost?
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the original cost of the old machin e the annual cash operati ng costs of the old machin e the disposa l value of the old machin e the annual cash operati ng costs of the replace ment machin e
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Question 4 1 points Save When deciding to accept a one-time-only special order from a wholesaler, management should do all of the following EXCEPT:
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analyz e produc t costs verify past design costs for the produc t determ ine whethe r excess capacit y is availab le consid er the special order's impact on future prices of their produc ts
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Question 5 1 points Save Unit cost data can MOST mislead decisions by:
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not comput ing unit costs at the same output level not comput ing fixed overhe ad costs comput ing admini strative costs comput ing labor and materia ls costs only
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Question 6 1 points Save The sum of all the costs incurred in a particular business function (for example, marketing) is called the: busines s functio n cost multipr oduct cost full
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Quiz 10 - [ACCT3104] MANAGERIAL COSTING AND CONTROL (ST...

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