A theaccount analysismethod b theconference method c

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Unformatted text preview: following information pertains to 20X8 operations. Sales (2,000 televisions) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commissions (4% of sales) 89) $ 900,000 400,000 70,000 157,000 15,000 36,000 What was the variable cost per unit sold for 20X8? A) $18 B) $218 C) $339 D) $200 Answer: B Explanation: B) ( Diff: 2 T 3 AACSB: Analytical skills 90) What were total fixed costs for 20X8? A) $678,000 B) $436,000 C) $242,000 D) $227,000 Answer: C Explanation: C) $ Diff: 2 T 3 AACSB: Analytical skills 91) What are the estimated total costs if Penny's expects to sell 3,000 units next year? A) $896,000 B) $678,000 C) $1,017,000 D) $799,000 Answer: A Explanation: A) $ Diff: 3 T 3 AACSB: Analytical skills 92) Which cost estimation method is being used by Penny's TV and Appliance Store? A) the industrial engineering method B) the conference method C) the account analysis method D) the quantitative analysis method Answer: C Diff: 2 Terms: cost estimation, account analysis method Objective: 3 AACSB: Analytical skills Answer the following questions using the information below: Miller's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2008 operations. Sales (5,000 microwave ovens) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commissions (4% of sales) 93) $ 1,350,000 540,000 75,000 225,000 25,000 67,500 Which cost estimation method is being used by Miller's Good Value Appliance Store? A) the account analysis method B) the conference method C) the quantitative analysis method D) the industrial engineering method Answer: A Diff: 2 Terms: cost estimation, account analysis method Objective: 3 AACSB: Analytical skills 94) What was the variable cost per unit sold for 2008? A) $13.50 B) $108 C) $121.50 D) $186.50 Answer: C Explanation: C) ( Diff: 2 T 3 AACSB: Analytical skills 95) What were total fixed costs for 2008? A) $932,500 B) $325,000 C) $250,000 D) $225,000 Answer: B Explanation: C) $ Diff: 2 T 3 AACSB: Analytical skills 96) What are the estimated total costs if Miller's expects to sell 6,500 units next year? A) $932,500 B) $1,104,750 C) $1,017,500 D) $665,000 Ans...
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This note was uploaded on 12/12/2012 for the course SB 305 taught by Professor Brown during the Spring '08 term at Clarkson University .

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