61 the president 39 s salary interest on corporate debt and corporate donations are 4302361

 

61)

The president's salary, interest on corporate debt and corporate donations are all examples of what type of costs?
61)

______ A)

distribution channel costs B)

sales costs C)

corporate sustaining costs D)

customer support costs E)

customer specific costs

62)

Customer specific costs are costs that
62)

______ A)

would not include selling-related costs. B)

are not traceable to individual customers. C)

would not include cost of goods sold. D)

are traceable to or allocated to individual customers. E)

are the same as customer support costs.

63)

Which of the following statements is TRUE?
63)

______ A)

Managers often find the bar chart presentation to be the most intuitive way to analyze customer profitability. B)

Managers find customer-profitability analysis useful because it frequently highlights how vital a small set of customers is to total profitability. C)

The bar chart presentation makes the highly profitable customers stand out. D)

Managers can ensure that low profitability customers receive high priority E)

Managers find customer-profitability analysis useful because when a customer is ranked in the loss category, they can focus on ways to make future business with this customer more profitable.

64)

of the following is NOT a factor that managers should consider in deciding how to allocate resources across customers
64)

______ A)

short-run and long-run customer profitability. B)

customer retention likelihood. C)

Ability to influence your customer D)

customer growth potential E)

increases in overall demand from having well-known customers.

65)

When inputs are substitutable,
65)

______ A)

direct materials efficiency decreases relative to budgeted costs, can be due to a more expensive mix to produce a given quantity of output. B)

direct materials efficiency decreases relative to budgeted costs, can be due to using less inputs to produce a given level of output. C)

Both of the above are correct. D)

direct materials efficiency decreases relative to budgeted costs, can be due to an unfavourable market-share variance. E)

direct materials efficiency decreases relative to budgeted costs, can be due to a more expensive mix to produce a given quantity of output, and/or using more inputs to produce a given level of output.

66)

A company uses two different input materials to produce one of its products. Based on the following data, calculate the price variance for input material B.

ActualActualBudgetBudget

InputInputInputInput

QuantityPriceQuantityPrice

Material A

 

 

 2,100$3.002,000 $3.25

Material B

 

 

 1,950$4.201,900$4.50
66)

______ A)

$585 U B)

$585 F C)

$8,775 F D)

$8,190 U E)

$8,775 U

67)

A company uses two different input materials to produce one of its products. Based on the following data, calculate the price variance for input material A.

 

 

 

ActualActualBudgeBudget

InputInputInputInput

QuantityPriceQuantityPrice

Material A

 

 

 2,100$3.002,000$3.25

Material B

 

 

 1,950$4.201,900$4.50
67)

______ A)

$6,825 F B)

$525 F C)

$6,825 U D)

$6,300 U E)

$525 U

68)

The plant manager has requested your assistance in resolving a dispute between two other departments. The purchasing manager claims to have saved the company $5,250 because of your report that the direct materials mix variance shows $5,250 favourable. Your report also notes the direct materials price variance of $8,250 unfavourable, and a direct materials yield variance of $3,000 favourable. The production manager is claiming to have saved the company $3,000, based on the yield variance. You have also calculated the flexible budget direct materials variance and the direct materials efficiency variance. What is the direct materials efficiency variance?
68)

______ A)

$2,250 U B)

$8,250 F C)

$2,250 F D)

$0 E)

$8,250 U

69)

A company uses two different input materials to produce one of its products. Based on the following data, (assume that the budget input is a flexible budget amount), calculate the efficiency variance for input material A.

ActualActualBudgetBudget

InputInputInputInput

QuantityPriceQuantity Price

Material A

 

 

 2,100$3.002,000$3.25

Material B

 

 

 1,950$4.201,900$4.50
69)

______ A)

$6,825 U B)

$325 U C)

$6,500 U D)

$325 F E)

$13,325 U

70)

A chemical company is developing a new fertilizer product, tentatively labelled Product X for the testing phase. Product X has two direct material inputs, a phosphates compound, and a base compound. This project is expected to be lucrative for the company, and involves a joint process. Part of the development is analysis of costs for pricing and resourcing decisions by management. For the last batch produced, the company budgeted the price of direct material inputs to be $80 for the chemicals and $65 for the base, but ended up paying $85 for each. Each batch takes 212 pounds of phosphates and 111 pounds of the base compound, designed to be 14% phosphates and 86% base compound. The test batch product achieved a satisfactory rating from the engineering department using a new mix of 28% phosphates and 72% base. If both mixes produce a satisfactory product for the company, which one would you recommend to the company, based on the mix variance?
70)

______ A)

new mix because the mix variance is $2,374,40 favourable B)

budget mix, because the mix variance is $1,010.10 unfavourable C)

new mix because the mix variance is $1,364.30 favourable D)

budget mix, because the mix variance is $2,374,40 unfavourable E)

budget mix because the mix variance is $1,364.30 unfavourable

 

71)

A chemical company is developing a new fertilizer product, tentatively labelled Product X for the testing phase. Product X has two direct material inputs, a phosphates compound, and a base compound. This project is expected to be lucrative for the company, and involves a joint process. Part of the development is analysis of costs for pricing and resourcing decisions by management. For the last batch produced, the company budgeted the price of direct material inputs to be $80 for the chemicals and $65 for the base, but ended up paying $85 for each. Each batch is budgeted to use 240 pounds of phosphates and 100 pounds of the base compound, designed to be 14% phosphates and 86% base compound. The test batch product achieved a satisfactory rating from the engineering department using a new mix of 28% phosphates and 72% base, but used 212 pounds of phosphates and 111 pounds of the base compound. If both mixes produce a satisfactory product for the company, which one would you recommend to the company, based on the yield variance?
71)

______ A)

new mix because the yield variance is $614.90 favourable B)

new mix, because the yield variance is $313.60 favourable C)

new mix because the yield variance is $928.50 favourable D)

budget mix, because the yield variance is $614.90 unfavourable E)

budget mix because the yield variance is $301.30 unfavourable