Question 1

Which of the following are stages of the marketing viewpoint of the product life cycle?

Accepted Answer

A) decline,growth,maturity 
B) production,growth,maturity 
C) decline,production,maturity 
D) decline,growth,production 
A) decline,growth,maturity 
B) production,growth,maturity 
C) decline,production,maturity 
D) decline,growth,production

Question 2

What is the term for the relationships of a firm's value chain activities that are performed with its suppliers and customers?

Accepted Answer

A) external linkages 
B) internal linkages 
C) industrial linkages 
D) value linkages 
A) external linkages 
B) internal linkages 
C) industrial linkages 
D) value linkages

Question 3

A firm that has implemented JIT had the following transactions:
1. Materals were purchased an account for $40,000
2. Materials were placed inta production.
3. Actual direct labour costs were $6,000.
4. Actual averhead costs were $40,000.
5. Conversion costs applied were $42,000.
6. All work was completed for the month.
7. All completed work was sald.
8. The variance is recoprized.
-Refer to the figure.What will be the entry to record material placed into production using the traditional approach?

Accepted Answer

A) $\begin{array}{ll}
\text { Materials and In Process Inventory } & 40,000 \
\quad \text { Work-in-Process Inventory } &\quad\quad\quad 40,000
\end{array}$ 
B) $\begin{array}{llr}
  \text { Materials Inventory } &40,000\
 \text {  Accounts Payable } &&40,000\
\end{array}$ 
C) $\begin{array}{lc}
\text { Work-in-Process Inventory } & 40,000 \
\quad \text { Materials and In Process Inventory } && 40,000
\end{array}$ 
D) $\begin{array}{ll}
\text { Work-in-Process Inventory } & 40,000 \
\text { Materials Inventory } && 40,000
\end{array}$ 
A) $\begin{array}{ll}
\text { Materials and In Process Inventory } & 40,000 \
\quad \text { Work-in-Process Inventory } &\quad\quad\quad 40,000
\end{array}$ 
B) $\begin{array}{llr}
  \text { Materials Inventory } &40,000\
 \text {  Accounts Payable } &&40,000\
\end{array}$ 
C) $\begin{array}{lc}
\text { Work-in-Process Inventory } & 40,000 \
\quad \text { Materials and In Process Inventory } && 40,000
\end{array}$ 
D) $\begin{array}{ll}
\text { Work-in-Process Inventory } & 40,000 \
\text { Materials Inventory } && 40,000
\end{array}$

Question 4

Rudy Company sells a product for $450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390. The product is currently earning a profit of $72 per unit. The president of Rudy Company feels that the $72 profit per unit must be maintained.
-Refer to the figure.What is the target cost per unit?

Accepted Answer

A) $159 
B) $189 
C) $195 
D) $225 
A) $159 
B) $189 
C) $195 
D) $225

Question 5

Which of the following is a trait of a traditional manufacturing system?

Accepted Answer

A) pull-through system 
B) long-term supplier contracts 
C) value-added focus 
D) total quality control 
A) pull-through system 
B) long-term supplier contracts 
C) value-added focus 
D) total quality control

Question 6

Which of the following are stages of the production life-cycle viewpoint?

Accepted Answer

A) design,research,testing 
B) introduction,research,testing 
C) design,introduction,testing 
D) design,research,introduction 
A) design,research,testing 
B) introduction,research,testing 
C) design,introduction,testing 
D) design,research,introduction

Question 7

Which stage of the marketing life cycle has slow sales growth with peak sales?

Accepted Answer

A) introduction 
B) growth 
C) maturity 
D) decline 
A) introduction 
B) growth 
C) maturity 
D) decline

Question 8

When are 90 percent or more of a product's life-cycle costs determined?

Accepted Answer

A) during the growth stage 
B) during the development stage 
C) during the decline stage 
D) during the maturity stage 
A) during the growth stage 
B) during the development stage 
C) during the decline stage 
D) during the maturity stage

Question 9

Vibro Company sells a product used in many manufacturing processes. The sales activity involves three activity areas:
$$\begin{array} { l l } 
\text { Activity Area } & \text { Cost Driver and Rate } \
\text { Order taking } & \$ 100 \text { per purchase order } \
\text { Sales visits } & \$ 50 \text { per visit } \
\text { Delivery vehicles } & 11 \text { per delivery mile }
\end{array}$$ The following customer information is given:
 $\begin{array}{lrrrr}
&\text {AX}&\text {BY}&\text {CV}&\text {DZ}\
\text { Units sold } & 100,000 & 80,000 & 70,000 & 60,000 \
\text { List price } & \$ 50 & \$ 50 & \$ 40 & \$ 50 \
\text { Actual sales price } & \$ 45 & \$ 48 & \$ 38 & \$ 50 \
\text { Number of purchase orders } & 30 & 20 & 15 & 10 \
\text { Number of sales visits } & 6 & 5 & 4 & 3 \
\text { Number of deliverv miles } & 100 & 80 & 70 & 60
\end{array}$
-Refer to the figure.What is the profitability of customer BY?

Accepted Answer

A) $2,330,000 
B) $3,837,670 
C) $3,840,000 
D) $4,000,000 
A) $2,330,000 
B) $3,837,670 
C) $3,840,000 
D) $4,000,000

Question 10

When has a competitive advantage been established?

Accepted Answer

A) when a company provides something to customers that is not provided by competitors 
B) when a high-cost strategy increases customer value by minimizing customer sacrifices 
C) when a low-profit item is dropped from the product line to increase the profitability of the firm overall 
D) when a customer realizes that all the competing firms are offering the same product 
A) when a company provides something to customers that is not provided by competitors 
B) when a high-cost strategy increases customer value by minimizing customer sacrifices 
C) when a low-profit item is dropped from the product line to increase the profitability of the firm overall 
D) when a customer realizes that all the competing firms are offering the same product

Question 11

Which of the following manufacturing costs is assigned to products in a JIT environment using allocation?

Accepted Answer

A) cafeteria services 
B) equipment depreciation 
C) insurance and taxes 
D) operating supplies 
A) cafeteria services 
B) equipment depreciation 
C) insurance and taxes 
D) operating supplies

Question 12

What are structural and executional activities types of?

Accepted Answer

A) organizational activities 
B) operating activities 
C) just in time activities 
D) total quality management activities 
A) organizational activities 
B) operating activities 
C) just in time activities 
D) total quality management activities

Question 13

Quickie Company recently implemented a JIT system and is considering implementing a backflush costing system. Following are the transactions for the first quarter of the year. 
1.Purchased raw materials on account for $375,000.
2.All materials were received and placed into production.
3.Actual labour costs of $75,000 were incurred.
4.Actual overhead costs of $425,000 were incurred.
5.Conversion costs of $480,000 were applied to production as conversion costs are recognized quarterly.
6.All work was completed for the month.
7.All completed work was sold.
8.The difference between applied costs and actual costs was determined.
1.Prepare journal entries using variation 2 of back flush costing.
2.Prepare journal entries using variation 4 of back flush costing.

Accepted Answer

The answer of Quickie Company recently implemented a JIT system...

Question 14

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using allocation?

Accepted Answer

A) insurance and taxes 
B) direct labour 
C) supervision (department) 
D) custodial services 
A) insurance and taxes 
B) direct labour 
C) supervision (department) 
D) custodial services

Question 15

What is the operational activity of moving inventory classified as?

Accepted Answer

A) a unit-level activity 
B) a batch-level activity 
C) a product-level activity 
D) a facility-level activity 
A) a unit-level activity 
B) a batch-level activity 
C) a product-level activity 
D) a facility-level activity

Question 16

What is the time a product exists-from conception to abandonment?

Accepted Answer

A) product life cycle 
B) revenue-producing life 
C) consumable life 
D) introduction stage 
A) product life cycle 
B) revenue-producing life 
C) consumable life 
D) introduction stage

Question 17

What viewpoint defines stages of the life cycle by changes in the type of activities performed?

Accepted Answer

A) accounting viewpoint 
B) customer viewpoint 
C) production viewpoint 
D) marketing viewpoint 
A) accounting viewpoint 
B) customer viewpoint 
C) production viewpoint 
D) marketing viewpoint

Question 18

A firm that has implemented JIT had the following transactions:
1. Materals were purchased an account for $40,000
2. Materials were placed inta production.
3. Actual direct labour costs were $6,000.
4. Actual averhead costs were $40,000.
5. Conversion costs applied were $42,000.
6. All work was completed for the month.
7. All completed work was sald.
8. The variance is recoprized.
-Refer to the figure.What will be the entry to record materials placed into production using the back flush approach?

Accepted Answer

A) $\begin{array}{ll}
\text { Materials and In Process Inventory } & 40,000 \
\quad \text { Work-in-Process Inventory } &\quad\quad\quad 40,000
\end{array}$ 
B) $\begin{array}{llr}
  \text { Materials Inventory } &40,000\
 \text {  Accounts Payable } &&40,000\
\end{array}$ 
C) $\begin{array}{ll}
\text { Work-in-Process Inventory } & 40,000 \
\text { Materials and In Process Inventory }&& 40,000
\end{array}$ 
D) No entry is required 
A) $\begin{array}{ll}
\text { Materials and In Process Inventory } & 40,000 \
\quad \text { Work-in-Process Inventory } &\quad\quad\quad 40,000
\end{array}$ 
B) $\begin{array}{llr}
  \text { Materials Inventory } &40,000\
 \text {  Accounts Payable } &&40,000\
\end{array}$ 
C) $\begin{array}{ll}
\text { Work-in-Process Inventory } & 40,000 \
\text { Materials and In Process Inventory }&& 40,000
\end{array}$ 
D) No entry is required

Question 19

What is the length of time that a product serves the needs of customers?

Accepted Answer

A) product life cycle 
B) revenue-producing life 
C) consumable life 
D) introduction stage 
A) product life cycle 
B) revenue-producing life 
C) consumable life 
D) introduction stage

Question 20

What stage of the product life cycle is the period of time when sales increase at a decreasing rate?

Accepted Answer

A) introduction stage 
B) growth stage 
C) maturity stage 
D) decline stage 
A) introduction stage 
B) growth stage 
C) maturity stage 
D) decline stage

Which of the following are stages of the marketing viewpoint of the product life cycle?

What is the term for the relationships of a firm's value chain activities that are performed with its suppliers and customers?

Which of the following is a trait of a traditional manufacturing system?

Which of the following are stages of the production life-cycle viewpoint?

Which stage of the marketing life cycle has slow sales growth with peak sales?

When are 90 percent or more of a product's life-cycle costs determined?

When has a competitive advantage been established?

Which of the following manufacturing costs is assigned to products in a JIT environment using allocation?

What are structural and executional activities types of?

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using allocation?

What is the operational activity of moving inventory classified as?

What is the time a product exists-from conception to abandonment?

What viewpoint defines stages of the life cycle by changes in the type of activities performed?

What is the length of time that a product serves the needs of customers?

What stage of the product life cycle is the period of time when sales increase at a decreasing rate?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 13: Strategic Cost Management

Which of the following are stages of the marketing viewpoint of the product life cycle?

What is the term for the relationships of a firm's value chain activities that are performed with its suppliers and customers?

Which of the following is a trait of a traditional manufacturing system?

Which of the following are stages of the production life-cycle viewpoint?

Which stage of the marketing life cycle has slow sales growth with peak sales?

When are 90 percent or more of a product's life-cycle costs determined?

When has a competitive advantage been established?

Which of the following manufacturing costs is assigned to products in a JIT environment using allocation?

What are structural and executional activities types of?

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using allocation?

What is the operational activity of moving inventory classified as?

What is the time a product exists-from conception to abandonment?

What viewpoint defines stages of the life cycle by changes in the type of activities performed?

What is the length of time that a product serves the needs of customers?

What stage of the product life cycle is the period of time when sales increase at a decreasing rate?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters