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ACCT 202 : Test2notes

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azuremammoth471
15 Mar 2019
School
University of Louisiana Lafayette
Department
Accounting
Course
ACCT 202
Professor
All

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Document Summary

Track costs through factory to finished goods and cost of goods sold. Other uses: solving scarce resource problems, evaluate product line profitability (periodic, evaluating special orders, evaluating performance (cost and profit centers) Summary: provide economic justification for allocations, understand the effects of allocations on managers decisions, benchmark for evaluations of allocations. In equilibrium: s=d (no excess demand, no excess supply) If price doesn"t change, we have an excess demand. P and q have a positive relation (i. e. p and q move in the same direction) Price system: rationing by price---people who value something the most are willing to pay the most for it. Choose volume where mr=mc; distinguish srmc from lrmc. Lr cost curve is an envelope of sr cost curves. Constant: when we double both inputs we double output. Increasing: when we double both inputs, we more than double output. Decreasing: when we double both inputs, get less than double output.

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Related Questions

QUESTION 1

  1. Value stream costing eliminates most of the transactions associated with conventional cost accounting because it ...

    A.

    makes more extensive use of standard costing.
    B.

    gathers and reports financial data in summary form at the value stream level rather than for each production job or product.
    C.

    automates financial reporting processes.
    D.

    uses more detailed and accurate overhead cost allocations than standard costing.

1 points

QUESTION 2

  1. In value stream costing, the labor costs assigned to a value stream ...

    A.

    include the costs of all personnel assigned to the value stream, plus allocations for support staff in all departments that support the value stream.
    B.

    include the costs of all personnel assigned to the value stream, but few if any allocations for any support staff outside the value stream.
    C.

    include the costs of all direct and indirect labor hours in the value stream, plus allocations of staff outside the value stream providing production support; but exclude any sales, marketing, or administrative personnel in the value stream.
    D.

    include the costs of all direct and indirect labor hours in the value stream, but exclude the costs of any sales, marketing or administrative personnel in the value stream.

1 points

QUESTION 3

  1. Value stream costing simplifies accounting in part by ...

    A.

    centralizing and consolidating the purchasing function.
    B.

    increasing the number of cost centers to more easily expose cost overruns.
    C.

    allocating all overhead using actual direct labor hours or machine hours rather than relying on more complex calculations.
    D.

    eliminating detailed labor reporting, including the distinction between direct and indirect labor.

1 points

QUESTION 4

  1. When using value stream costing, managers evaluate decisions about product rationalization (keeping or dropping a product) by ...

    A.

    examining the effects on overall value stream results of continuing to produce and sell a product versus dropping it.
    B.

    comparing the production cost per unit of all products in the value stream.
    C.

    disregarding the financial impact, and examining instead the effects on the value stream operating measures shown in the box score of continuing to produce and sell a product versus dropping it.
    D.

    comparing the gross profit margins for all products.

1 points

QUESTION 5

  1. Exotic Chocolates had material costs of $24,000 and conversion costs of $18,000 in their most recent month containing 20 working days. At the end of the month, Exotic Chocolates had material on hand equal to six days of production, work-in-process equal to three days of production, and finished goods equal to eight days of production. The value for ending inventory using the “days of stock” method is ...

    A.

    $ 28,950
    B.

    $ 32,550
    C.

    $ 35,700
    D.

    $ 42,000

1 points

QUESTION 6

  1. Which of the following is an example of a good use of the value stream box score?

    A.

    Plant and division managers using the box score analyze variances from budgeted standard costs.
    B.

    Plant and division managers using the box score to encourage and evaluate the results of competition between their value streams for best overall performance.
    C.

    Value stream continuous improvement teams using the box score to design high-impact kaizen events and improvement plans.
    D.

    Employees in the production cells using the box score to manage daily performance.

1 points

QUESTION 7

  1. The box score measures three dimensions of performance in the value stream: operational, financial, and ...

    A.

    quality.
    B.

    capacity.
    C.

    flow.
    D.

    strategic.

1 points

QUESTION 8

  1. Displaying actual value stream results in a box score with a column for each week in a quarter is a good way to use the box score to ...

    A.

    show the effects of planned lean improvements.
    B.

    track value stream performance and continuous improvement.
    C.

    evaluate the effect of tactical decision alternatives, such as accepting a special order.
    D.

    evaluate the effect of management decision alternatives, such as adding a product line.

1 points

QUESTION 9

  1. Displaying current state performance and future states based on the expected results of pursuing different strategy alternatives. is a good way to use the box score to ...

    A.

    evaluate the effect of strategic decision alternatives, such as adding a product line.
    B.

    track value stream performance and continuous improvement.
    C.

    show the effects of planned lean improvements.
    D.

    show the impact of actual lean improvements.

1 points

QUESTION 10

  1. A good way to use the box score to evaluate the impact of lean improvements is to ...

    A.

    display current state performance and a future state based on planned improvements.
    B.

    display current state performance and future states based on the expected results of pursuing different strategy alternatives.
    C.

    display actual box score results for all the weeks in a quarter to show the trends in performance.
    D.

    display current performance for the most current week or month, without reference to expected future states or performance trends.