2) Yield variances: A) reveal the effect of substitution within a single factor of production B) address the productivity of a single component of one factor of production C) capture both substitutions between factors of production as well as within factors of production D) reveal the effect of substitution within multiple factors of production 3) Partial productivity multiplied by the quantity of input used results in: A) expected production B) budgeted output C) actual output D) a ratio 4) ________ measures the relationship between actual inputs used and actual outputs achieved. A) Total factor productivity B) Partial productivity C) Productivity […]

13) Measures of the balanced scorecard's customer perspective include all of the following EXCEPT: A) market share B) customer satisfaction C) number of new customers D) customer training on new products 14) Measures of the balanced scorecard's internal-business-process perspective include: A) market share B) new product development time C) employee education D) return on investment 15) Measures of the balanced scorecard's internal-business-process perspective include all of the following EXCEPT: A) operating capabilities B) number of new products C) employee turnover rates D) defect rates 16) Measures of the balanced scorecard's learning-and-growth perspective include: A) employee satisfaction ratings B) economic value […]

13) A locked-in cost is a(n): A) opportunity cost that is fixed in the short run B) cost that can be changed in the short run C) cost that has not yet been incurred, but based on decisions that have already been made, will be incurred in the future D) cost that has been incurred, but based on decisions that have already been made, will be not incurred in the future 14) Locked-in costs, or designed-in costs, are costs that have NOT yet been incurred but, based on decisions that have already been made, will be incurred in the future. […]

3.3   Questions 1) When managers graph a linear cost function with one cost driver, the intercept represents the ________ cost and the slope represents the ________ cost. A) variable; fixed B) fixed; variable C) fixed; mixed D) variable; mixed 2) A cause and effect relationship between a ________ and a ________ is desirable in order to obtain accurate and useful cost functions. A) cost driver; cost function B) cost function; resource cost C) cost driver; resource cost D) step cost; capacity cost 3) When developing cost functions, which of the following statement is FALSE? A) The cost function must be […]

  12) A local attorney employs ten full-time professionals. The budgeted compensation per employee is $75,000. The maximum billable hours for each client are 200. Clients always receive their full amount of time. All professional labour costs are included in a single direct cost category and are traced to jobs on a per-hour basis. Any other costs are included in a single indirect cost pool, allocated according to professional labour-hours. Budgeted indirect costs for the year are $1,000,000 and the firm had 20 clients.   Required: a.What is the direct labour budgeted cost rate per hour? b.What is the indirect […]