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BUSI601 Module 3 Latest 2019 Exam 1 (Liberty University) Already Graded A
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BUSI601 Module 3 Latest 2019 Exam 1 (Liberty University) Already Graded A
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Cost relevant to a make versus buy decision Avoidable fixed costsinclude variable manufacturing costs as well
as
employee morale and social responsibility qualitative decision factors
represent two examples of
Determination of the optimum short-term production constraints
product mix needs to include an analysis of:
In deciding whether to drop or keep a The level of unavoidable fixed costs
product line, all of the following are relevant
to the decision EXCEPT
Lyman Company has the opportunity to 1. Incremental collection fees = 0.15 " increase In annual credit sales = 0.15 " $100,000 =
increase annual credit sates $100,000 by $15,000
selling to a new. riskier group of customers. 2. Expected increase in after-tax profit= expected increase in pre-tax profit x (1 -1).
The expenses of collecting credit sales are where t =income tax rate= ('increased revenue· increased collection fees· increased
expected to be 15 percent of credit sales. manufacturing & selling expenses) x (1-0.40) = (($100,000- $15,000 -
The company's manufacturing and selling $70,000) x( 0.60] = $9,000
expenses are
70% of sales, and its effective tax rate is 40%.
If Lyman should accept this opportunity, the
company's after-tax profits would increase
by:
Many firms are finding it is difficult to Price and functionality.
compete successfully on cost leadership or
differentiation alone, and they must, in fact,
compete on both:
David Corporation manufactures a single Obtain a better understanding of the competitors' prices
product that has a cost of $250. The
company uses a 60% markup on
manufacturing cost to arrive al a selling
price of $400, which results in a price that is
higher than that of the leading competitors.
If David adopts the
approach known as target costing, the
company will first
Henry ford pioneer the use of target costing
Which of the following is a common type of Functional analysis
value engineering in which the performance
and cost of each major function or feature of
the product is examined?
The theory of constraints (TOC) approach is A more responsive and flexible manufacturing environment
strategically important In dynamic markets
because it leads to
, The management accountant at Jang decline
Manufacturing Co. collected the following
data in preparation for a lifecycle analysis on
one of its products, a leaf blower.
Average
Average
An nual Change Change Over Over the Last
Item This Year Last Year Four Years
Annual sales $3,200.000 -2.4% + 3.5o/o
Unit sales price 500 - 2.1% + 3.34!-
Unit profit '100 - 10.0o/o + 2.0
Total Profit 700.000 -1.2% + 3.0%
which of the following are computer-based Cost tables.
databases that include comprehensive
information about the firm's cost drivers?
During the sales life cycle, which is an Sales rise slowly as customers become aware of the new product or service. Product
example of what happens during the variety is limited.
introduction phase?
Reduced time-lo-market, reduced expected Product design
service cost, and ease-of-manufacture are
critical success factors at which stage of the
cost life cycle?
As a strategic issue budget slack could lower overall level of expected performance than is achievable
represent a
"Outsourcing" a cost center is often done to: Reduce cost and obta.in strategic focus.
Seek to avoid options with high risk and would choose an option wi1h lower expected
Managers who are risk averse:
value if it had less risk.
Which of the following is NOT a revenue Productivity.
driver factor which affects sales volume for a
manufacturing firm?
T odweed Academy ailocates marketing and $480,000 = $1,200,000 X ($1,200,000/$3,000,000)
administrative costs to its three schools Ans is $480,000
based on total annual tuition revenue for the
schools:
Lower ~ middle upper
School Sclh sch Total
Tuition revenue Sl,000.000 $800.000
Sl.200.000 $3,000,000
Market & admin $1,200,000
Using revenue as an allocation base, the
amount of costs allocated to the Upper
School is calculated to be:
The value stream income statement provides A separate accounting for the effect of inventory change on profit
the following information not usually
contained in the contribution income
statement
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