answer to 70 - cost driver to use for the cost of the...

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61. A potential capital investment will be depreciated $5,000 per year for five years. Which of the following pieces of information would a manager need to calculate the cash flow associated with depreciation? (Points: 5) the tax rate 62. Capital investment decisions typically involve several kinds of cash flows. Which kind best describes an asset's residual value? (Points: 5) none of the above 63. Choosing the proper method of allocating costs to products and services can have a major impact on what? (Points: 5) arriving at a proper cost for the product or service 64. It is estimated that the cost of electricity to run a machine for an entire 8-hour shift is $16. The machine can produce 200 units of product for each hour of operation. How much electricity cost is allocated to each unit of product? (Points: 5) $0.01 65. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. If the company decided to adopt an ABC costing system to accumulate costs for its service, what would be an appropriate
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Unformatted text preview: cost driver to use for the cost of the packaging envelopes provided to customers? (Points: 5) number of packages 66. Which of the following elements of Cooper's cost hierarchy is most difficult to allocate because they cannot be associated directly with a product? (Points: 5) facility-level costs 67. All of the following are strategic decisions except (Points: 5) improving machine setup times 68. A collection of related operating budgets is known as a (Points: 5) master budget 69. Hamilton has budgeted total manufacturing overhead costs for the year as $125,000 based on 20,000 direct labor hours. The ratio of variable manufacturing overhead costs to fixed manufacturing overhead costs is 2:1. In a given month 2,000 direct labor hours are budgeted for production. How much overhead is budgeted? (Points: 5) $11,805.55 70. Research has shown that managers perform best when (Points: 5) there is a moderately difficult but achievable budget...
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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answer to 70 - cost driver to use for the cost of the...

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