ACCT 434 Week 3 Cost Behavior Decision Making Quality


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ACCT 434 Week 3 Cost Behavior Decision Making Quality

Question :
(TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?
Question :
(TCO 3) For January, the cost components of a picture frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs?
Question :
(TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?
Question :
(TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X8 operations: Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager’s salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000. What are the estimated total costs if Penny’s expects to sell 3,000 units next year?
Question :
(TCO 4) The formal process of choosing among alternatives is known as a(n)
Question :
(TCO 4) When using the five-step decision process, which one of the following steps should be done last?
Question :
(TCO 4) Sunk costs
Question :
(TCO 4) Northwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods’ policy to add a 50% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Northwoods is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order?
Question :
(TCO 5) Throughput contribution equals revenues minus
Question :
(TCO 5) A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and multiple machines. One way the company can overcome the bottleneck is


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