Question 1

24-hour customer service not traceable to an individual customer is an example of what type of cost?

Accepted Answer

A)  corporate sustaining costs 
B)  distribution channel costs 
C)  customer sustaining costs 
D)  customer specific costs 
E)  warranty costs 
A)  corporate sustaining costs 
B)  distribution channel costs 
C)  customer sustaining costs 
D)  customer specific costs 
E)  warranty costs

Question 2

Which of the following is not a sales related variance?

Accepted Answer

A)  sales volume variance 
B)  sales quantity variance 
C)  market size variance 
D)  direct materials yield variance 
E)  market share variance 
A)  sales volume variance 
B)  sales quantity variance 
C)  market size variance 
D)  direct materials yield variance 
E)  market share variance

Question 3

A sporting goods division sells two types of juvenile skates; Atom and Mite. The following data are from the division's August results. Actual sales were 1,600 items, and the budget was 2,200 items.
   Variable costs per unit (pair) were budgeted at $56 for the Atom skates, and $119,350 in total.
Required:
Compute the sale-mix variance by type of skate, and in total.

Accepted Answer

Budget sales units for Atom = 2,200 × 60

Question 4

Under the stand-alone method, which weights better capture the benefits received by customers who purchase a bundled product?

Accepted Answer

Four types of weights for the stand-alon

Question 5

The sales-quantity variance can be unfavourable if both the market-share and market-size variances are favourable.

Accepted Answer

A) True 
 B)False

Question 6

Better Printing sells hardcover and softcover books. For January the following information is available:
   Required:
1. Compute the market-share variance and market-size variance. (Round intermediate calculations to four decimal places)
2. Compute the total sales-quantity variance .

Accepted Answer

@#IMG-DLM& @#IMG-DLM& @#IMG-DLM& @#IMG-DLM& @#IMG-DLM& Market-share variance:
600,000 × (0

Question 7

Metal Cabinet Company manufactures two and four drawer filing cabinets. The actual units sold (5,000) equalled the expected units to be sold for both products. The four drawer cabinets constitute 66 percent of the budgeted sales mix. The selling price is $30 for four drawer cabinets and $15 for two drawer cabinets. What is the sales-quantity variance?

Accepted Answer

A)  $0 
B)  $25,500 
C)  $49,500 
D)  $99,000 
E)  $101,500 
A)  $0 
B)  $25,500 
C)  $49,500 
D)  $99,000 
E)  $101,500

Question 8

The data for a paint manufacturing company for February are as follows:
   Price discount policy:
$0.25 discount per gallon in excess of 20,000 gallons (up to 40,000)
$0.35 discount per gallon in excess of 40,000 gallons
Required:
Prepare a report showing the customer-specific contribution. Present one column for customer-specific contribution and a second column showing customer-specific contribution as a percentage of customer revenue net of discounts (round percentages to two decimal places).

Accepted Answer

@#IMG-DLM& Customer 1 (20 × $9) + (20 × $8.75) + (

Question 9

The incremental revenue-allocation method uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

Accepted Answer

A) True 
 B)False

Question 10

When the actual mix of products sold shifts in favour of the high-contribution-margin product,

Accepted Answer

A)  the total sales-mix variance is unfavourable. 
B)  the total sales-mix variance is favourable. 
C)  the total sales-volume variance is unfavourable. 
D)  the total sales-volume variance is favourable. 
E)  the total sales volume is more favourable (or less unfavourable). 
A)  the total sales-mix variance is unfavourable. 
B)  the total sales-mix variance is favourable. 
C)  the total sales-volume variance is unfavourable. 
D)  the total sales-volume variance is favourable. 
E)  the total sales volume is more favourable (or less unfavourable).

Question 11

Customer-profitability analysis examines how individual customers, or groupings of customers, differ in their profitability.

Accepted Answer

A) True 
 B)False

Question 12

________ uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

Accepted Answer

A)  The stand-alone revenue allocation method 
B)  The averaging approach 
C)  The incremental revenue-allocation method 
D)  The joint production costing method 
E)  The weighted averaging approach 
A)  The stand-alone revenue allocation method 
B)  The averaging approach 
C)  The incremental revenue-allocation method 
D)  The joint production costing method 
E)  The weighted averaging approach

Question 13

Revenue shedding refers to the strategy of providing price discounts on a long-term basis to specific customers.

Accepted Answer

A) True 
 B)False

Question 14

Lynnwood Ltd. is reviewing two of its customers using ABC analysis. It has identified the following customer related activities and their rates:
   The company has the following information regarding Enbright Ltd. and Jackson Inc.:
   Sales for Enbright and Jackson are $280,000 and $148,000 respectively. The gross margins on these sales are the same at 52%.
Required:
Using Customer ABC Analysis, analyze the relative profitability of Enbright and Jackson.

Accepted Answer

The customer related costs for each of t

Question 15

Answer the following questions using the information below:
Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:
  
-What is the market-size variance?

Accepted Answer

A)  $500 U 
B)  $1,500 U 
C)  $1,600 F 
D)  $1,000 F 
E)  $1,500 F 
A)  $500 U 
B)  $1,500 U 
C)  $1,600 F 
D)  $1,000 F 
E)  $1,500 F

Question 16

Answer the following questions using the information below:
Zorro Company manufactures remote control devices for garage doors. The following information was collected during June:
  
-What is the sales-quantity variance?

Accepted Answer

A)  $1,500 U 
B)  $1,000 F 
C)  $500 U 
D)  $2,500 U 
E)  $500 F 
A)  $1,500 U 
B)  $1,000 F 
C)  $500 U 
D)  $2,500 U 
E)  $500 F

Question 17

The market-share variance is caused solely by the actual market share being different than the budgeted market share.

Accepted Answer

A) True 
 B)False

Question 18

The sales-volume variance for revenue is the

Accepted Answer

A)  (actual sales quantity in units divided by budgeted individual product selling price per unit) times (budgeted sales quantity in units). 
B)  (budgeted contribution margin per unit) times (actual unit sales plus static budget unit sales). 
C)  (actual sales quantity in units plus budgeted sales quantity in units) divided by (budgeted individual product selling price per unit). 
D)  (budgeted sales quantity in units divided by budgeted individual selling price per unit) times (actual sales quantity in units). 
E)  (budgeted individual product selling price per unit) times (actual sales quantity in units less budgeted sales quantity in units). 
A)  (actual sales quantity in units divided by budgeted individual product selling price per unit) times (budgeted sales quantity in units). 
B)  (budgeted contribution margin per unit) times (actual unit sales plus static budget unit sales). 
C)  (actual sales quantity in units plus budgeted sales quantity in units) divided by (budgeted individual product selling price per unit). 
D)  (budgeted sales quantity in units divided by budgeted individual selling price per unit) times (actual sales quantity in units). 
E)  (budgeted individual product selling price per unit) times (actual sales quantity in units less budgeted sales quantity in units).

Question 19

A bundled product is a package of two or more products or services, sold for a single price, where the individual components of the bundle may also be sold as separate items, each with their own stand-alone prices.

Accepted Answer

A) True 
 B)False

Question 20

Analyzing whether to add or drop a customer is an application of relevant costing analysis.

Accepted Answer

A) True 
 B)False

24-hour customer service not traceable to an individual customer is an example of what type of cost?

Which of the following is not a sales related variance?

Under the stand-alone method, which weights better capture the benefits received by customers who purchase a bundled product?

The sales-quantity variance can be unfavourable if both the market-share and market-size variances are favourable.

Better Printing sells hardcover and softcover books. For January the following information is available: Required: 1. Compute the market-share variance and market-size variance. (Round intermediate calculations to four decimal places) 2. Compute the total sales-quantity variance .

The incremental revenue-allocation method uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

When the actual mix of products sold shifts in favour of the high-contribution-margin product,

Customer-profitability analysis examines how individual customers, or groupings of customers, differ in their profitability.

________ uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

Revenue shedding refers to the strategy of providing price discounts on a long-term basis to specific customers.

Answer the following questions using the information below: Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: -What is the market-size variance?

Answer the following questions using the information below: Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: -What is the sales-quantity variance?

The market-share variance is caused solely by the actual market share being different than the budgeted market share.

The sales-volume variance for revenue is the

A bundled product is a package of two or more products or services, sold for a single price, where the individual components of the bundle may also be sold as separate items, each with their own stand-alone prices.

Analyzing whether to add or drop a customer is an application of relevant costing analysis.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 16: Revenue and Customer Profitability Analysis

24-hour customer service not traceable to an individual customer is an example of what type of cost?

Which of the following is not a sales related variance?

Under the stand-alone method, which weights better capture the benefits received by customers who purchase a bundled product?

The sales-quantity variance can be unfavourable if both the market-share and market-size variances are favourable.

Better Printing sells hardcover and softcover books. For January the following information is available: Required: 1. Compute the market-share variance and market-size variance. (Round intermediate calculations to four decimal places) 2. Compute the total sales-quantity variance .

The incremental revenue-allocation method uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

When the actual mix of products sold shifts in favour of the high-contribution-margin product,

Customer-profitability analysis examines how individual customers, or groupings of customers, differ in their profitability.

________ uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products.

Revenue shedding refers to the strategy of providing price discounts on a long-term basis to specific customers.

Answer the following questions using the information below: Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: -What is the market-size variance?

Answer the following questions using the information below: Zorro Company manufactures remote control devices for garage doors. The following information was collected during June: -What is the sales-quantity variance?

The market-share variance is caused solely by the actual market share being different than the budgeted market share.

The sales-volume variance for revenue is the

A bundled product is a package of two or more products or services, sold for a single price, where the individual components of the bundle may also be sold as separate items, each with their own stand-alone prices.

Analyzing whether to add or drop a customer is an application of relevant costing analysis.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters