Question 1 (2.5 points) Customer profitability: Question 1 options: A) are most accurately measured using traditional costing. B) is reflected by gross margin. C) are most accurately measured using activity based costing. D) are most accurately measured using a combination of traditional costing and activity based costing. Save Question 2 (2.5 points) The 80/20 rule: Question 2 options: A) finds that 80% of revenues are generated by the top 20% of the customers. B) finds that 80% of profits are generated by the top 20% of the customers. C) can be graphed as the whale curve. D) finds that 80% of costs are generated by 20% of the customers. Save Question 3 (2.5 points) Customers that require a low price and lots of customized service are: Question 3 options: A) high cost to serve and low margin. B) low cost to serve and low margin. C) low cost to serve and high margin. D) high cost to serve and high margin. Save Question 4 (2.5 points) Customers are price sensitive with few special demands are: Question 4 options: A) low cost to serve and low margin. B) low cost to serve and high margin. C) high cost to serve and low margin. D) high cost to serve and high margin. Save Question 5 (2.5 points) Omega Company has the following two customers: INSERT TABLE "D" If the company pays a 4% sales commission based on customer profit, this will encourage a salespersons' efforts to sell to: Question 5 options: A) Ensley, an unprofitable customer. B) Woodruff, a profitable customer. C) Ensley, a profitable customer. D) Woodruff, an unprofitable customer. Save Question 6 (2.5 points) Which of the following is not a critical parameter for calculating customer lifetime value? Question 6 options: A) profits or losses B) initial acquisition cost C) revenues D) the duration of the relationship Save Question 7 (2.5 points) Which model has the greatest contribution margin per unit? Question 7 options: A) long model B) base model C) trick model D) both the base model and the long model Save Question 8 (2.5 points) Quality engineering costs are an example of: Question 8 options: A) internal failure costs. B) prevention costs. C) external failure costs. D) appraisal costs. Save Question 9 (2.5 points) The implementation of just-in-time production results in all of the following EXCEPT: Question 9 options: A) a slower pace for employees. B) decreased cycle times. C) reduced amount of waste. D) structural changes. Save Question 10 (2.5 points) Characteristics of just-in-time manufacturing include all of the following EXCEPT: Question 10 options: A) making a product only when the customer requires it. B) a problem anywhere can stop production. C) the ability to process items in large batches. D) no work-in-process inventories.
Question 1 (2.5 points) Customer profitability: Question 1 options: A) are most accurately measured using traditional costing. B) is reflected by gross margin. C) are most accurately measured using activity based costing. D) are most accurately measured using a combination of traditional costing and activity based costing. Save Question 2 (2.5 points) The 80/20 rule: Question 2 options: A) finds that 80% of revenues are generated by the top 20% of the customers. B) finds that 80% of profits are generated by the top 20% of the customers. C) can be graphed as the whale curve. D) finds that 80% of costs are generated by 20% of the customers. Save Question 3 (2.5 points) Customers that require a low price and lots of customized service are: Question 3 options: A) high cost to serve and low margin. B) low cost to serve and low margin. C) low cost to serve and high margin. D) high cost to serve and high margin. Save Question 4 (2.5 points) Customers are price sensitive with few special demands are: Question 4 options: A) low cost to serve and low margin. B) low cost to serve and high margin. C) high cost to serve and low margin. D) high cost to serve and high margin. Save Question 5 (2.5 points) Omega Company has the following two customers: INSERT TABLE "D" If the company pays a 4% sales commission based on customer profit, this will encourage a salespersons' efforts to sell to: Question 5 options: A) Ensley, an unprofitable customer. B) Woodruff, a profitable customer. C) Ensley, a profitable customer. D) Woodruff, an unprofitable customer. Save Question 6 (2.5 points) Which of the following is not a critical parameter for calculating customer lifetime value? Question 6 options: A) profits or losses B) initial acquisition cost C) revenues D) the duration of the relationship Save Question 7 (2.5 points) Which model has the greatest contribution margin per unit? Question 7 options: A) long model B) base model C) trick model D) both the base model and the long model Save Question 8 (2.5 points) Quality engineering costs are an example of: Question 8 options: A) internal failure costs. B) prevention costs. C) external failure costs. D) appraisal costs. Save Question 9 (2.5 points) The implementation of just-in-time production results in all of the following EXCEPT: Question 9 options: A) a slower pace for employees. B) decreased cycle times. C) reduced amount of waste. D) structural changes. Save Question 10 (2.5 points) Characteristics of just-in-time manufacturing include all of the following EXCEPT: Question 10 options: A) making a product only when the customer requires it. B) a problem anywhere can stop production. C) the ability to process items in large batches. D) no work-in-process inventories.
Related questions
| Exercise 7-3 Compute Activity Rates [LO3]
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1.If there is a change in the level of the number of unitsproduced:
a.fixed costs per unit will be the same and variable costs per unitwill change.
b.fixed and variable costs per unit will change.
c.fixed and variable costs per unit will remain the same.
d.fixed costs per unit will change and variable costs per unit willbe the same.
2.Which of the following will decrease a companyâs breakevenpoint?
A) Decreasing the contribution margin per unit.
B) Increasing the variable cost per unit.
C) Increasing the total fixed costs.
D) Increasing the selling price per unit.
3.In generating cost information fordetermining whether or not to delete a product line, the mostimportant distinction to identify is: | ||
A) | direct versus indirect costs | |
B) | fixed versus variable costs | |
C) | manufacturing versus non-manufacturing costs | |
D) | avoidable versus unavoidable costs | |
4.Which of the following is the proper sequence in anactivity-based costing system?
A) Identification of cost drivers, identification ofcost pools, calculation of cost application rates, assignment ofcost to products.
B) Identification of cost pools, identification of costdrivers, calculation of cost application rates, assignment of costto products.
C) Assignment of cost to products, identification ofcost pools, identification of cost drivers, calculation of costapplication rates,.
D) Calculation of cost application rates,identification of cost drivers, identification of cost pools,assignment of cost to products.
5.Which of the following statements is true?
A) A traditional volume-based system based on directlabor generally undercosts high volume product lines.
B) In a traditional volume-based costing system basedon direct labor, low volume products generally subsidize highvolume products.
C) An activity-based costing system generallyundercosts low-volume, complex product lines.
D) A traditional volume-based costing system based ondirect labor generally undercosts low-volume, complex productlines.
6.Hamilton Company applies overhead based on direct labor hours.At the beginning of 2005, the company estimated that manufacturingoverhead would be $700,000, and direct labor hours would be 10,000.Actual overhead by the conclusion of 2005 amounted to $800,000 andactual direct labor hours were 14,000. On the basis of thisinformation, Horton's 2005 predetermined overhead rate is:
A) $50.00
B) $70.00
C) $80.00
D) $57.14
