Question 1 of 20
5.0 Points
Customer relations are usually part of:
A. the supply chain.
B. the value chain.
C. both the value chain and the supply chain.
D. neither the value chain nor the supply chain. Reset Selection
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Question 2 of 20
5.0 Points
Which of the following statements is true?
A. A company’s value chain is not part of its supplychain.
B. A manufacturer’s supply chain typically includes research anddevelopment and customer service.
C. A company’s supply chain includes the value chains of itssuppliers.
D. Your supplier’s suppliers are part of your valuechain. Reset Selection
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Question 3 of 20
5.0 Points
Process value analysis (PVA) identifies all activities of aproduction and/or assembly operation for the purpose of:
A. preparing budgets based on activitycenters.
B. determining the value of the process.
C. replacing cost drivers used in cost assignment analyses withactivities.
D. relating cost assignment to the activities that caused the costto be incurred. Reset Selection
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Question 4 of 20
5.0 Points
A nonvalue-adding activity is defined as a(n):
A. administrative or support activity that adds overhead cost tothe product and increases its market value.
B. activity that adds cost to a product but does not increase itsmarket value.
C. activity that adds no cost to the product but increases itsmarket value.
D. wasteful but unavoidable production activity. Reset Selection
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Question 5 of 20
5.0 Points
Product unit costs computed using activity-based costing comparedto product unit costs computed using a traditional costing approachwill:
A. sometimes be the same.
B. always be higher.
C. always be the same.
D. always be lower. Reset Selection
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Question 6 of 20
5.0 Points
A framework for classifying value-adding and nonvalue-addingactivities according to the level at which their costs are incurredis called a:
A. bill of activities.
B. full product cost.
C. value chain.
D. cost hierarchy. Reset Selection
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Question 7 of 20
5.0 Points
Which one of the four levels of the cost hierarchy would be used bya dress manufacturer that uses activity-based management for sewingseams on a garment?
A. Unit-level activity
B. Batch-level activity
C. Product-level activity
D. Facility-level activity Reset Selection
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Question 8 of 20
5.0 Points
The initial step in achieving the efficiency of a just-in-timesystem is to:
A. redesign the plant layout.
B. replace laborers with machines.
C. stop ordering materials for inventory.
D. identify products that are not profitable. Reset Selection
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Question 9 of 20
5.0 Points
Backflush costing aims at reducing waste in the:
A. accounting system.
B. cost of goods sold.
C. storage of raw materials.
D. production process. Reset Selection
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Question 10 of 20
5.0 Points
The typical relationship between variable costs and volume may bedescribed best as which of the following?
A. Costs increase in an erratic, unpredictable fashion with changesin volume.
B. Costs stay fairly constant with changes involume.
C. Costs increase with changes in volume up to a certain point andthen remain constant.
D. Costs increase in direct proportion to increases involume. Reset Selection
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Question 11 of 20
5.0 Points
The variable cost per unit __________ as the number of salesincrease.
A. decreases
B. changes
C. remains constant
D. increases Reset Selection
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Question 12 of 20
5.0 Points
The level of operating capacity that is needed to meet expectedsales demand is called:
A. practical capacity.
B. normal capacity.
C. ideal capacity.
D. excess capacity. Reset Selection
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Question 13 of 20
5.0 Points
Theoretical capacity reduced by normal and anticipated workstoppages is called:
A. practical capacity.
B. normal capacity.
C. ideal capacity.
D. excess capacity. Reset Selection
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Question 14 of 20
5.0 Points
Theoretical capacity refers to:
A. extra machinery and equipment kept onhand.
B. the maximum productive output possible.
C. an output level that allows for normal workstoppages.
D. the operating capacity that will meet expected salesdemand. Reset Selection
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Question 15 of 20
5.0 Points
The high-low method:
A. calculates variable costs per unit by dividing the difference inthe high and low activity levels by the high and lowcosts.
B. assumes that the fixed portion of the mixed cost is the lowestmonthly cost incurred during the period underconsideration.
C. allows differentiation between fixed and variable costs whendealing with mixed costs.
D. combines the fixed and variable portions of a cost to determinethe total cost. Reset Selection
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Question 16 of 20
5.0 Points
The equation for finding the breakeven point may be written as:
A. S – VC – FC = 0.
B. VC – FC = S.
C. S + FC = VC.
D. S + VC + FC = 0. Reset Selection
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Question 17 of 20
5.0 Points
The breakeven point is:
A. where fixed and variable costs reach the upper level of therelevant range.
B. the level of activity where all fixed costs arerecovered.
C. where total revenue equals total costs.
D. where fixed costs meet variable costs. ResetSelection
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Question 18 of 20
5.0 Points
The equation that will provide the breakeven point in units (SP =selling price) is:
A. BE units = (SP – VC) ÷ FC per unit.
B. VC per unit + FC = SP per unit x BE units.
C. BE units = FC ÷ CM per unit.
D. SP per unit – VC per unit = FC ÷ BE units. Reset Selection
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Question 19 of 20
5.0 Points
Contribution margin equals sales minus:
A. cost of goods sold.
B. total costs.
C. fixed costs.
D. variable costs. Reset Selection
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Question 20 of 20
5.0 Points
For every unit that a company produces and sells above thebreakeven point, its profitability is improved (ignoring taxes) bythe unit’s:
A. gross margin.
B. selling price minus fixed cost.
C. variable cost.
D. contribution margin.
ScholarMatic: Explanation & Answer
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