Solved by verified expert :31.
Production or support SBUs within the firm that have the goal of providing the
best quality product or service at the lowest cost are:
A.
Revenue centers.
B.
Contribution centers.
C.
Profit centers.
D.
Cost centers.
E.
Investment centers.
32.
SBUs that generate revenues and incur the major portion of the cost for
producing those revenues are:
A.
Revenue centers.
B.
Contribution centers.
C.
Profit centers.
D.
Cost centers.
E.
Investment centers.
33.
SBUs that include the assets they employ as well as profits in the performance
evaluation are:
A.
Revenue centers.
B.
Contribution centers.
C.
Profit centers.
D.
Cost centers.
E.
Investment centers.
34.
The replacing of controllable costs with non-controllable costs by a department
is:
A.
Budget slack.
B.
Cost shifting.
C.
Outsourcing.
D.
Discretionary-cost
method.
E.
Engineered-cost
approach.
35.
For production and support departments, a method of implementing cost centers
that is input-oriented is the:
A.
Budget slack.
B.
Cost shifting approach.
C.
Outsourcing approach.
D.
Discretionary-cost
method.
E.
Engineered-cost
approach.
36.
For production and support departments, a method of implementing cost centers
that is output-oriented is the:
A.
Budget slack method.
B.
Cost shifting approach.
C.
Outsourcing approach.
D.
Discretionary-cost
method.
E.
Engineered-cost
approach.
37.
Expenditures of revenue centers usually include:
A.
Order-purchasing costs.
B.
Order-getting costs.
C.
Order-producing costs.
D.
Order-scheduling costs.
E.
Order-delivering costs.
38.
The balanced scorecard measures the SBU’s performance in all of the following
areas except:
A.
Learning and growth.
B.
Managerial performance.
C.
Customer satisfaction.
D.
Internal business
processes.
E.
Accounting and tax
compliance.
39. Bilbo
owned two adjoining restaurants, the Pork Palace and the Chicken Hut. Each
restaurant was treated as a profit center for performance evaluation purposes.
Although the restaurants had separate kitchens, they shared a central baking
facility. The principal costs of the baking area included materials, supplies,
labor, and depreciation and maintenance on the equipment. Bilbo allocated the
monthly costs of the baking facility to the two restaurants based on the number
of tables served in each restaurant during the month using dual allocation and
equal sharing of fixed costs. In April, the costs were $40,000, of which
$16,000 were fixed. The Pork Palace served 4,400 tables, while the Chicken Hut
served 3,600 tables.
The amount of joint cost
that should have been allocated to the Pork Palace in April is calculated to
be:
A.
$8,000.
B.
$10,800.
C.
$13,200.
D.
$18,800.
E.
$21,200.
40. Bilbo
owned two adjoining restaurants, the Pork Palace and the Chicken Hut. Each
restaurant was treated as a profit center for performance evaluation purposes.
Although the restaurants had separate kitchens, they shared a central baking
facility. The principal costs of the baking area included materials, supplies,
labor, and depreciation and maintenance on the equipment. Bilbo allocated the
monthly costs of the baking facility to the two restaurants based on the number
of tables served in each restaurant during the month using dual allocation and
equal sharing of fixed costs. In April, the costs were $40,000, of which
$16,000 were fixed. The Pork Palace served 4,400 tables, while the Chicken Hut
served 3,600 tables.
The amount of the joint
cost that should have been allocated to the Chicken Hut in April is calculated
to be:
A.
$8,000.
B.
$10,800.
C.
$13,200.
D.
$18,800.
E.
$21,200.
41.
Organic Laboratories
allocates research and development costs to its three research facilities based
on each facility’s total annual revenue from new product developments:
Using revenue as
an allocation base, the amount of costs allocated to the Kentucky research
facility is calculated to be:
A.
$24,000,000.
B.
$18,000,000.
C.
$9,000,000.
D.
$14,000,000.
E.
$26,000,000.
42.
Organic Laboratories
allocates research and development costs to its three research facilities based
on each facility’s total annual revenue from new product developments:
Using revenue as
an allocation base, the amount of costs allocated to the Arizona research
facility is calculated to be:
A.
$25,000,000.
B.
$31,000,000.
C.
$44,000,000.
D.
$19,000,000.
E.
$36,000,000.
43.
Organic Laboratories
allocates research and development costs to its three research facilities based
on each facility’s total annual revenue from new product developments:
Using revenue as
an allocation base, the amount of costs allocated to the Illinois research
facility is calculated to be:
A.
$17,000,000.
B.
$33,000,000.
C.
$14,000,000.
D.
$28,000,000.
E.
$21,000,000.
44.
Todweed Academy allocates marketing and administrative costs to its three
schools based on total annual tuition revenue for the schools:
Using revenue as
an allocation base, the amount of costs allocated to the Lower School is
calculated to be:
A.
$240,000.
B.
$320,000.
C.
$400,000.
D.
$480,000.
E.
$600,000.
45.
Todweed Academy allocates marketing and administrative costs to its three
schools based on total annual tuition revenue for the schools:
Using revenue as
an allocation base, the amount of costs allocated to the Middle School is
calculated to be:
A.
$240,000.
B.
$320,000.
C.
$400,000.
D.
$480,000.
E.
$600,000.
46.
Todweed Academy allocates marketing and administrative costs to its three
schools based on total annual tuition revenue for the schools:
Using revenue as
an allocation base, the amount of costs allocated to the Upper School is
calculated to be:
A.
$240,000.
B.
$360,000.
C.
$400,000.
D.
$480,000.
E.
$600,000.
47.
Pane Inc. manufactures
hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in
both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.
The following data summarized the 2009 and 2010 operations:
Full costing
operating income for 2009 is calculated to be:
A.
$935.
B.
$1,150.
C.
$1,200.
D.
$1,352.
E.
$1,395.
48.
Pane Inc. manufactures
hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in
both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.
The following data summarized the 2009 and 2010 operations:
Full costing
operating income for 2010 is calculated to be:
A.
$935.
B.
$1,150.
C.
$1,200.
D.
$1,352.
E.
$1,395.
49.
Pane Inc. manufactures
hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in
both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.
The following data summarized the 2009 and 2010 operations:
Variable costing
operating income for 2009 is calculated to be:
A.
$935.
B.
$1,150.
C.
$1,200.
D.
$1,352.
E.
$1,395.
50.Pane
Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit.
Budgeted production in both 2009 and 2010 was 3,000 units. There was no
beginning inventory in 2009. The following data summarized the 2009 and 2010
operations:
Variable
costing operating income for 2010 is calculated to be:
A.
$935.
B.
$1,150.
C.
$1,200.
D.
$1,352.
E.
$1,395.
