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This 6 page Class Notes was uploaded by Nikita Hendricks on Sunday October 9, 2016. The Class Notes belongs to 2304 at Baylor University taught by Prof. Stuebs in Fall 2016. Since its upload, it has received 4 views. For similar materials see Managerial Accounting in Accounts at Baylor University.
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Date Created: 10/09/16
Managerial Which of the following management responsibilities often involves the use of budgets? None of the above Directing Controlling Planing Planing The first step in computing and using ABC is which of the following? Identifying the company's primary activities. Allocating some MOH to each job. Selecting appropriate allocation bases. Calculating activity cost allocation rates. Identifying the company's primary activities. Activities incurred regardless of how many units, batches, or products are produced are activities. batch-level facility-level product-level unit-level facility-level Which of the following is true? Value-added activities are also referred to as waste activities. The goal of value engineering is to decrease the amount of value- added activities. ABM refers to using activity-based cost information to make decisions. ABC is only applicable to manufacturers. ABM refers to using activity-based cost information to make decisions The potential benefits of ABC/ABM are generally higher for companies that are in non-competitive markets. produce high volumes of some products and low volumes of other products. produce one product. have low manufacturing overhead costs. produce high volumes of some products and low volumes of other products. Lean operations are generally characterized by production in self-contained cells. all of the above. employee empowerment. JIT inventory systems. all of the above. Which of the following is not one of the "eight wastes" included in the acronym DOWNTIME? Inventory Transportation Neglect Overproduction Neglect Concerning lean operations, which of the following is false? Are quickly becoming the dominant business paradigm. Focus on internal and external waste. Can leave companies vulnerable to supply-chain disruptions. Can be found in all sectors, not just manufacturing Focus on internal and external waste. Which of the following is not one of the costs of quality categories? Prevention costs Appraisal costs Transportation costs External failure costs Transportation costs Which of the following would be considered an external failure cost? Warranty costs Rework costs Cost of inspecting incoming raw materials Cost to train personnel Warranty costs A graph of variable cost starts at any point on the y-axis and is horizontal. any point on the y-axis and slopes upward. the origin and is horizontal. the origin and slopes upward. the origin and slopes upward. Which of the following is true? Fixed cost per unit decreases when volume increases. Fixed cost per unit increases when volume increases. You Answered Total fixed costs decrease when volume increases. Total fixed costs increase when volume increases. Fixed cost per unit decreases when volume increases. In the cost equation y= vx+ f, the term "v" stands for fixed cost. total cost. total variable cost. variable cost per unit. variable cost per unit. If x=35, v=$100, and f=$1,000, then total costs equal $4,500 $1,100 $100 $3,500 ... Which of the following is false? Curvilinear costs can be approximated as mixed costs or broken into smaller relevant ranges for cost prediction purposes. Step costs are fixed over small ranges of activity. Changes in the variable costs per unit often occur within a given relevant range. The concept of relevant range is applicable to both fixed and variable costs. Changes in the variable costs per unit often occur within a given relevant range. Which of the following is false? Scatter plots should be prepared to help identify outliers. When performing account analysis, managers use their judgment to classify cost behavior. Data points falling in a linear pattern suggest a weak relationship between cost and volume. When creating a scatter plot, volume should be plotted on the x-axis while cost should be plotted on the y-axis. Data points falling in a linear pattern suggest a weak relationship between cost and volume. Which of the following is false about the high-low method? The slope found from the method represents the variable cost per unit. It yields an equation for a straight line connecting the high and low data points. Selection of the high and low data points should be based on cost, not volume. It is based on only two data points. Selection of the high and low data points should be based on cost, not volume. Which of the following is true about regression analysis? It is sometimes referred to as the line of best fit. It is theoretically less sound than the high-low method. It is based on two data points. The resulting R-squared statistic shows how well the line fits the data points. It is sometimes referred to as the line of best fit. Which of the following is true regarding variable costing? It is allowed by GAAP for external reporting purposes. It treats variable MOH costs as period costs, rather than inventoriable product costs. It is allowed by the IRS for tax preparation. It treats fixed MOH costs as period costs, rather than inventoriable product costs. It treats fixed MOH costs as period costs, rather than inventoriable product costs. Which of the following is false? The operating income of manufacturers will always be the same, regardless of whether variable or absorption costing is used. Under absorption costing, the fluctuation of inventory levels will impact operating income, regardless of sales revenue. A contribution margin income statement is organized by cost behavior. The contribution margin is equal to sales revenue minus variable expenses.
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