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ACCT 434 Week 3 Cost Behavior Decision Making Quality .pdf


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DEVRY ACCT 434 Week 3 Cost Behavior
Decision Making Quality
Check this A+ tutorial guideline at
http://www.acct434assignment.com/acct
-434-devry/acct-434-week-3-costbehavior-decision-making-quality
1.
Question :
(TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12
per hour and the rest are salaried employees paid $3,000 a month. How would total
costs of personnel be classified?
2.
Question :
(TCO 3) For January, the cost components of a picture frame include $0.35 for the
glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly desk and
tools cost $400. A total of 1,000 frames is expected to be produced in the coming
year. What cost function best represents these costs?
3.
Question :
(TCO 3) Which cost estimation method uses a formal mathematical method to
develop cost functions based on past data?
4.
Question :
(TCO 3) Penny's TV and Appliance Store is a small company that has hired you to
perform some management advisory services. The following information pertains to
20X8 operations: Sales (2,000 televisions) $900,000; Cost of goods sold $400,000;
Store manager's salary per year $70,000; Operating costs per year $157,000;
Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000.
What are the estimated total costs if Penny's expects to sell 3,000 units next year?
5.
Question :
(TCO 4) The formal process of choosing among alternatives is known as a(n)

6.
Question :
(TCO 4) When using the five-step decision process, which one of the following steps
should be done last?
7.
Question :
(TCO 4) Sunk costs
8.
Question :
(TCO 4) Northwoods Incorporated manufactures rustic furniture. The cost
accounting system estimates manufacturing costs to be $90 per table, consisting of
80% variable costs and 20% fixed costs. The company has surplus capacity available.
It is Northwoods' policy to add a 50% markup to full costs. A large hotel chain is
currently expanding and has decided to decorate all new hotels using the rustic style.
Northwoods is invited to submit a bid to the hotel chain. What is the lowest price per
unit Northwoods should bid on this long-term order?
9.
Question :
(TCO 5) Throughput contribution equals revenues minus
10.
Question :
(TCO 5) A machine has been identified as a bottleneck and the source of the
constraint for a manufacturing company that has multiple products and multiple
machines. One way the company can overcome the bottleneck is

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