Introduction To Management Accounting 16th Edition By Horngren-Test Bank

Test Bank For Introduction To Management Accounting 16th Edition By Horngren

ISBN-10: 013305974X , ISBN-13: 9780133059748

Chapter 3 Measurement of Worth Conduct

3.1 Questions

1) Managers can have an effect on the amount of mounted and variable costs in a company by means of decisions about ________.

A) product attributes

B) functionality diploma

C) amount of extreme experience gear used for manufacturing merchandise

D) all the above

Reply: D

Diff: 1

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

2) The utilization of extreme experience gear to manufacture merchandise in its place of extraordinarily professional labor typically results in ________.

A) elevated discretionary mounted costs

B) elevated discretionary variable costs

C) lower hazard

D) elevated working leverage

Reply: D

Diff: 2

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

3) Which of the following costs is perhaps canceled inside the fast run?

A) wage of CEO of agency

B) mortgage charge on manufacturing facility establishing

C) lease funds on two-year lease for leased gear in manufacturing facility

D) administration consulting firms engaged to range agency emblem

Reply: D

Diff: 2

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

4) A hospital supplies a model new addition and needs to build up some new gear for the addition. The worth driver for the gear is patient-days per 30 days. The model new addition will enhance the patient-days per 30 days exterior the associated range. What sort of equipment costs will change on account of the addition?

A) discretionary mounted costs

B) discretionary variable costs

C) devoted mounted costs

D) devoted variable costs

Reply: C

Diff: 2

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

5) Managers can eliminate ________ costs solely for a given yr in dire cases comparable to a critical recession. However, managers can’t eliminate ________ costs.

A) discretionary variable costs; devoted variable costs

B) discretionary mounted costs; devoted mounted costs

C) discretionary variable costs; devoted mounted costs

D) devoted mounted costs; devoted variable costs

Reply: B

Diff: 2

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

6) If a corporation eliminates all discretionary costs attributable to a excessive recession, this would possibly ________.

A) be sure that the company research a web loss

B) be sure that the company research a web income

C) reestablish a corporation’s aggressive place in an enterprise

D) impair a corporation’s aggressive place in an enterprise

Reply: D

Diff: 2

LO: 3-1

AACSB: Reflective contemplating skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

7) Many organizations use a linear relationship with a single worth driver to elucidate a price though the worth may have numerous worth drivers. Why?

A) This technique is less complicated and cheaper.

B) The worth of making a additional difficult function is larger than the revenue.

C) Worth estimates from the simple function are right ample for a lot of decisions.

D) All of the above

Reply: D

Diff: 2

LO: 3-1

AACSB: Analytic skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

8) It is perhaps troublesome to trace costs to providers or merchandise if the costs are ________.

A) volume-driven

B) pushed by actions instantly related to amount

C) pushed by numerous worth drivers

D) not one of many above

Reply: C

Diff: 2

LO: 3-1

AACSB: Analytic skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

9) Simon Inc. at current produces 110,000 fashions at a price of $440,000. The worth is variable. Subsequent yr Simon Inc. expects to provide 115,000 fashions. Simon’s associated range for manufacturing is 100,000 to 120,000 fashions. If 115,000 fashions are produced subsequent yr, what is the anticipated variable worth?

A) $420,000

B) $430,000

C) $440,000

D) $460,000

Reply: D

Diff: 1

LO: 3-1

AACSB: Analytic skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs

10) Donahue at current produces 120,000 fashions at a price of $400,000. Of the $400,000 worth, $200,000 is a tough and quick worth. Subsequent yr Donahue expects to provide 145,000 fashions. Donahue’s associated range for manufacturing actions is 100,000 to 150,000 fashions. If 145,000 fashions are produced subsequent yr, what is the anticipated mounted worth for subsequent yr?

A) $200,000

B) $241,667

C) $441,667

D) $483,333

Reply: A

Diff: 2

LO: 3-1

AACSB: Analytic skills

Learning Remaining end result: Define and distinguish between variable, mounted and blended costs