Question

9. In cost-volume-profit analysis, a multiple-product problem is converted into a single-product problem by:

a. determining the sales prices.

b. defining the features of the products.

c. determining the unit variable cost.

d. defining a particular sales mix in units.

13. Which of the following is true of sensitivity analysis?

a. It allows managers to vary costs, prices, and sales mix to show various possible break-even points.

b. It can be performed only when managers have accurate data about financial forecasts.

c. It provides accurate data about sales, contribution margin, and operating income without ambiguity.

d. It can be easily performed on hand with limited knowledge of revenue and cost systems.

4. Which of the following is an example of a direct fixed cost?

a. Cost of a mold for a product

c. Cost of printing annual reports

d. Salary of a receptionist

1.Decisions that involve choosing between different alternatives that attempt to provide a competitive advantage over a particular time frame are called:

b. strategic decisions.

c. relevant decisions.

d. short-term decisions

14. Budgets can be improved as performance measures by:

a. holding managers accountable for noncontrollable costs.

b. using fixed budgeting.

c. setting standards that are either too high or too low.

d. using participative budgeting.

15. _____ are an example of nonmonetary incentives used to enhance a budgetary control system.

a. Bonuses paid to managers

b. Salary increases to workers

c. Recognition programs

d. Promotions offered to supervisors

10. Which of the following is true of target pricing?

a. It aims to increase cost on redesigning the product during the production stage.

b. It requires the use of fewer materials, labor, and processes during production, delivery and customer service.

c. It recognizes that only 50% of a product's cost becomes committed by the time it reaches the design stage.

11. Budgets can be improved as performance measures by:

a. holding managers accountable for noncontrollable costs.

b. using fixed budgeting.

c. setting standards that are either too high or too low.

d. using participative budgeting.

12. _____ are an example of nonmonetary incentives used to enhance a budgetary control system.

a. Bonuses paid to managers

b. Salary increases to workers

c. Recognition programs

d. Promotions offered to supervisors

Answer 1