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ACC 434 final exams

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ACC 434 final exams

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1. (TCO 1) A significant limitation of activity-based costing is the (Points: 5)
A). attention given to indirect cost allocation.
B). many necessary calculations.
C). operations staff 's attitude toward the accounting staff.
D). use it makes of technology.

2. (TCO 1) Ireland Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activity? (Points : 5)
A). $0.50
B). $1.00
C). $1.50
D). $2.25

3. (TCO 2) Overhead costs have been increasing due to all of the following except …show more content…

C). revenues are usually the best indicator of the benefits received.
D). None of the above

13. (TCO 7) Life-cycle budgeting is particularly important when
A). the development period for R&D is short and inexpensive.
B). there are significant nonproduction costs.
C). most costs are locked in during production.
D). a low percentage of costs are incurred before any revenues are received.

14. (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $2,000,000, allocated on the basis of the number of units produced. Selling price is computer by adding a 12% markup to full cost. How much should the selling price be per unit for 300,000 units?
A). $49
B). $43.75
C). $42
D). $41.07

15. (TCO 8) The costs used in cost-based transfer prices
A). are actual costs.
B). are budgeted costs.
C). can either be actual or budgeted costs.
D). are lower than the market-based transfer prices.

16. (TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.80 per pound while Division B incurs additional costs of $3 per pound.
What is Division A 's operating income per pound, assuming the transfer price of the soybean paste is set at $1.25 per pound?
A). $0.45
B). $0.875
C). $1.25
D). $1.625

17. (TCO 8) Transferring products or services at market prices

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