Gb519 management level control quiz 3

1. The use of a relationship of total factory overhead to direct labor hours is said to be valid only within the relevant range, which means: (Points : 2)

      [removed] Within a reasonable dollar amount for labor costs.
      [removed] Within the range of observations of the cost driver.
      [removed] Within the range of reasonableness as judged by the department supervisor.
      [removed] Within the budget allowance for overhead.


2. The p-value measures: (Points : 2)

      [removed] The probability that the regression equation is reliable.
      [removed] The statistical significance of the dependent variable.
      [removed] The risk that a particular independent variable has only a chance relationship to the dependent variable.
      [removed] The confidence range around the regression prediction.


3. Which of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? (Points : 2)

      [removed] Data accuracy.
      [removed] Time period choice.
      [removed] Nonlinearity.
      [removed] Relevant range.


4. Which one the following is a variable that takes on values of 1, 2, 3, … for each period in sequence? (Points : 2)

      [removed] Dummy variable.
      [removed] Price change index.
      [removed] Trend variable.
      [removed] Dependent variable.
      [removed] Independent variable.


5. The contribution income statement would require a firm to: (Points : 2)

      [removed] Separate costs into fixed and variable categories.
      [removed]- Separate revenue into different categories.
      [removed] Round off amounts to the nearest dollar.
      [removed] Ignore some estimated fixed expenses, such as depreciation, that don’t involve a cash outlay.
      [removed] Restructure its accounting system to accommodate activity-based costing


6. The form of the income statement that is used in CVP analysis is referred to as: (Points : 2)

      [removed] An activity-based cost (ABC) income statement.
      [removed] A contribution income statement.
      [removed] An absorption costing income statement.
      [removed] A flexible-budget income statement.
      [removed] A segment profitability report.


7. The difference between sales price per unit and variable cost per unit is the: (Points : 2)

      [removed] Contribution margin per unit (cm).
      [removed] Total contribution margin (CM).
      [removed] Contribution margin ratio.
      [removed] Margin of safety (MOS).
      [removed] Breakeven point.


8. The degree of operating leverage (DOL), at any sales volume, is equal to: (Points : 2)

      [removed] (Operating profit – fixed expenses) ÷ sales.
      [removed] (Sales – variable expenses) ÷ operating profit.
      [removed] Operating profit ÷ (fixed expenses – variable expenses).
      [removed] Sales ÷ (fixed expenses – operating profit).
      [removed] Fixed costs ÷ Total contribution margin.


9. Budgeting for production (i.e., units to be produced in an upcoming budget period): (Points : 2)

      [removed] Is simply an extension of the sales forecast.
      [removed] Is prepared after the materials purchases budget is prepared.
      [removed] Involves the sales budget and both beginning and ending finished goods inventory amounts.
      [removed] Is not needed under a JIT production philosophy.
      [removed] Is normally the first major step in the master budgeting process.


10. The master budget for a given accounting period has all the following except: (Points : 2)

      [removed] It consists of a series of operating and financial budgets.
      [removed] It is considered the “grand plan of action” for the upcoming period.
      [removed] It culminates in a set of pro forma financial statements.
      [removed] It is considered an important planning document for many organizations.
      [removed] It is based on the actual level of sales activity for the period.


11. Sales forecasts are the first step in the budgeting process of a merchandising firm because: (Points : 2)

      [removed] The revenue data are easiest to generate.
      [removed] Sales information is precise in amount.
      [removed] Sales personnel have the quickest access to data.
      [removed] Sales forecasts are the most objective of all budgeted activities.
      [removed] Almost all activities of a firm emanate from (i.e., are linked to) estimated sales demand.


12. The type of compensation plan that focuses on the difference between actual performance (sales, operating income, etc.) and budgeted performance is refers to: (Points : 2)

      [removed] The use of flexible budgets for performance evaluation.
      [removed] The use of the master budget for performance evaluation.
      [removed] The use of “rolling financial forecasts.”
      [removed] The use of a fixed-performance contract.
      [removed] The use of a Kaizen forecast.


13. Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm’s upcoming income stream. The CFO asked you to use the company financial information provided below.
Sales Price                                $75.00
Per Unit Variable Costs:
      Invoice Cost                          41.70
     Sales Commission                 18.30
Total Per Unit Variable Cost          $60.00
Fixed Costs:
     Advertising                               $ 56,000
     Rent                                              78,000
     Salaries                                        226,000
Total Annual Fixed Costs              $360,000  
If 40,000 office chairs were sold, Stylish Sitting’s operating income would be: (Points : 2)

      [removed] $240,000.
      [removed] $280,000.
      [removed] $210,000.
      [removed] $340,000.
      [removed] $120,000.


14. Jackson, Inc. is preparing a budget for the coming year and requires a breakdown of the cost of electrical power used in its factory into the fixed and variable elements. The following data on the cost of power used and direct labor hours worked are available for the last six months of this year:
Month                 $ for Power              DL Hours
July                         $ 15,850                       3,000
Aug                            13,400                       2,050
Sept                           16,370                        2,900
Oct                             19,800                       3,650
Nov                            17,600                       2,670
Dec                            18,500                        2,650
     Total                 $101,520                      16,920
Assuming that Jackson uses the high-low method of analysis, the estimated variable cost of steam per direct labor hour is: (Points : 2)

      [removed] $4.00.
      [removed] $5.42.
      [removed] $5.82.
      [removed] $6.00.


15. Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the year) are expected to be $10,000, unit sales price is expected to be $12, and unit variable costs are budgeted at $7.
Cleaning Care’s margin of safety (MOS) in units is: (Points : 2)

      [removed] 1,000.
      [removed] 2,000.
      [removed] 4,000.
      [removed] 8,000.
      [removed] 9,000.




Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages