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Unformatted text preview: . : : : 12/06/2006 : : : : Question One: (20 Marks) Each multiple choice Question has four suggested answers, letter (A) , (B) , (C) , or (D). You should read each Question and then decide which choice is best . 1) The length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates . a. Break even time . b. Payback period . c. Throughput time . d. None . 2) Questions (2 4). Refer to the following: A TQM team at Sea Corp has recorded the following average times for production: Wait 3.0 days Move 0.5 days Inspection 0.4 days Queue 9.3 days Process 0.2 days What is the throughput time? a. 10.4 days b. 0.2 days c. 4.1 days d. 13.4 days 3 ) What is the (MCE) Manufacturing Cycle Efficiency? a. 50.0% b. 1.9% c. 52.0% d. 5.1% 4) What is the delivery cycle time? a. 0.5 days b. 0.7 days c. 13.4 days d. 10.4 days 1 5) Wesber Company's direct labor cost is 30% of its conversion cost. If the manufacturing overhead cost for the last period was $49,000 and the direct materials cost was $20,000, the direct labor cost was: a. 6,000 b. 14,700 c. 21,000 d. 34,000 6) Questions 6 and 7 refer to the following: At a sales volume of 30,000 units, Fadi inc.'s total fixed costs are $30,000 and total variable costs are $45,000. The relevant range for the product is 20,000 to 40,000 units. If Fadi were to sell 32,000 units, the total expected cost would be: A. 75,000 B. 78,000 C. 80,000 D. 77,000 7)If Fadi were to sell 40,000 units, the total expected cost per unit (rounded to the nearest cent ) would be: A. 2.50 B. 2.25 C. 2.13 D. 1.88 8) Which of the following statements about cost behavior are true? A. Fixed costs per unit vary with the level of activity. B. Variable costs per unit are constant within the relevant range. C. Total fixed costs are constant within the relevant range. D. Total variable costs are constant within the relevant range. 9) Questions 9 and 10 refer to the following : Sales salaries and commissions are $10,000 when 80,000 units are sold, and $14,000 when 120,000 units are sold. Using the high- low method, what is the variable portion of sales salaries and commission? A. $0.08 per unit B. $0.10 per unit C. $0.12 per unit D. $0.125 per unit 10) The fixed portion of sales salaries and commissions?...
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This note was uploaded on 10/17/2010 for the course EXAMS E0000000 taught by Professor Salemh. during the Spring '10 term at Islamic University.
- Spring '10