ACC 434 final exams
ACC 434 final exams
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1. (TCO 1) A significant limitation of activity-based costing is the (Points: 5)
A). attention given to indirect cost allocation.
B). many necessary calculations.
C). operations staff 's attitude toward the accounting staff.
D). use it makes of technology.
2. (TCO 1) Ireland Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activity? (Points : 5)
A). $0.50
B). $1.00
C). $1.50
D). $2.25
3. (TCO 2) Overhead costs have been increasing due to all of the following except (Points : 5)
A). product proliferation.
B). tracing more costs as direct costs with the help of technology.
C). more complexity in distribution processes.
D). increased automation.
4. (TCO 2) Information pertaining to Brenton Corporation 's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 80% of the next month 's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
Brenton 's budgeted total cash payments in March for inventory purchases are
A). $385,000.
B). $505,000.
C). $306,250.
D). $280,000.
5. (TCO 2)
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1. (TCO 1) A significant limitation of activity-based costing is the (Points: 5)
A). attention given to indirect cost allocation.
B). many necessary calculations.
C). operations staff 's attitude toward the accounting staff.
D). use it makes of technology.
2. (TCO 1) Ireland Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activity? (Points : 5)
A). $0.50
B). $1.00
C). $1.50
D). $2.25
3. (TCO 2) Overhead costs have been increasing due to all of the following except (Points : 5)
A). product proliferation.
B). tracing more costs as direct costs with the help of technology.
C). more complexity in distribution processes.
D). increased automation.
4. (TCO 2) Information pertaining to Brenton Corporation 's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 80% of the next month 's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
Brenton 's budgeted total cash payments in March for inventory purchases are
A). $385,000.
B). $505,000.
C). $306,250.
D). $280,000.
5. (TCO 2)