361Chapter10MCSolutions参考模板

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1、Chapter 10Relevant Information for Decision MakingMULTIPLE CHOICE1.Costs forgone when an individual or organization chooses one option over another area.budgeted costs.b.sunk costs.c.historical costs.d.opportunity costs.ANS:DPTS:1DIF:EasyOBJ:10-1NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Com

2、petencies: Decision Modeling2.Which of the following costs would not be accounted for in a companys recordkeeping system?a.an unexpired costb.an expired costc.a product costd.an opportunity costANS:DPTS:1DIF:EasyOBJ:10-1NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeli

3、ng3.Which of the following is not a characteristic of relevant costing information? It isa.associated with the decision under consideration.b.significant to the decision maker.c.readily quantifiable.d.related to a future endeavor.ANS:CPTS:1DIF:EasyOBJ:10-1NAT:AACSB: Reflective ThinkingLOC:AICPA Func

4、tional Competencies: Decision Modeling4.A fixed cost is relevant if it is1 / 29a.uncontrollable.b.avoidable.c.sunk.d.a product cost.ANS:BPTS:1DIF:EasyOBJ:10-1NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling5.Relevant costs area.all fixed and variable costs.b.all cos

5、ts that would be incurred within the relevant range of production.c.past costs that are expected to be different in the future.d.anticipated future costs that will differ among various alternatives.ANS:DPTS:1DIF:EasyOBJ:10-1NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Mo

6、deling6.Which of the following is the least likely to be a relevant item in deciding whether to replace an old machine?a.acquisition cost of the old machineb.outlay to be made for the new machinec.annual savings to be enjoyed on the new machined.life of the new machineANS:APTS:1DIF:EasyOBJ:10-2NAT:A

7、ACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling7.If a cost is irrelevant to a decision, the cost could not bea.a sunk cost.b.a future cost.c.a variable cost.d.an incremental cost.ANS:DPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies:

8、Decision Modeling8.Which of the following costs would be relevant in short-term decision making?a.incremental fixed costsb.all costs of inventoryc.total variable costs that are the same in the considered alternativesd.the cost of a fixed asset that could be used in all the considered alternativesANS

9、:APTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling9.The term incremental cost refers toa.the profit foregone by selecting one choice instead of another.b.the additional cost of producing or selling another product or service.c.a cost that contin

10、ues to be incurred in the absence of activity.d.a cost common to all choices in question and not clearly or feasibly allocable to any of them.ANS:BPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling10.A cost is sunk if ita.is not an incremental cos

11、t.b.is unavoidable.c.has already been incurred.d.is irrelevant to the decision at hand.ANS:CPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling11.Most _ are relevant to decisions to acquire capacity, but not to short-run decisions involving the use

12、 of that capacity.a.sunk costsb.incremental costsc.fixed costsd.prime costsANS:CPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling12.Irrelevant costs generally includeSunk costsHistorical costsAllocated costsa.yes yes nob.yes no noc.no no yesd.yes

13、 yes yesANS:DPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling13.In deciding whether an organization will keep an old machine or purchase a new machine, a manager would ignore thea.estimated disposal value of the old machine.b.acquisition cost of

14、 the old machine.c.operating costs of the new machine.d.estimated disposal value of the new machine.ANS:BPTS:1DIF:EasyOBJ:10-2NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling14.The potential rental value of space used for production activitiesa.is a variable cost of

15、 production.b.represents an opportunity cost of production.c.is an unavoidable cost.d.is a sunk cost of production.ANS:BPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling15.The opportunity cost of making a component part in a factory with excess c

16、apacity for which there is no alternative use isa.the total manufacturing cost of the component.b.the total variable cost of the component.c.the fixed manufacturing cost of the component.d.zero.ANS:DPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeli

17、ng16.Which of the following are relevant in a make or buy decision?VariablecostsAvoidable fixedcostsUnavoidable fixedcostsa.no yes yesb.yes no yesc.no no yesd.yes yes noANS:DPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling17.In a make or buy dec

18、ision, the opportunity cost of capacity coulda.be considered to decrease the price of units purchased from suppliers.b.be considered to decrease the cost of units manufactured by the company.c.be considered to increase the price of units purchased from suppliers.d.not be considered since opportunity

19、 costs are not part of the accounting records.ANS:APTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling18.Which of the following are relevant in a make or buy decision?Prime costsSunk costsIncremental costsa.yes yes yesb.yes no yesc.yes no nod.no no

20、 yesANS:BPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling19.In a make or buy decision, the reliability of a potential supplier isa.an irrelevant decision factor.b.relevant information if it can be quantified.c.an opportunity cost of continued pr

21、oduction.d.a qualitative decision factor.ANS:DPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling20.Which of the following qualitative factors favors the buy choice in a make or buy decision for a part?a.maintaining a long-term relationship with su

22、ppliersb.quality control is criticalc.utilization of idle capacityd.part is critical to productANS:APTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling21.When a scarce resource, such as space, exists in an organization, the criterion that should be

23、 used to determine production isa.contribution margin per unit.b.selling price per unit.c.contribution margin per unit of scarce resource.d.total variable costs of production.ANS:CPTS:1DIF:EasyOBJ:10-4NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling22.Contracting wi

24、th vendors outside the organization to obtain or acquire goods and/or services is calleda.target costing.b.insourcing.c.outsourcing.d.product harvesting.ANS:CPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling23.Which of the following activities wi

25、thin an organization would be least likely to be outsourced?a.accountingb.data processingc.transportationd.product designANS:DPTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling24.An outside firm selected to provide services to an organization is c

26、alled aa.contract work organization.d.centralized insourcer.ANS:APTS:1DIF:EasyOBJ:10-3NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling25.Fixed costs are ignored in allocating scarce resources becausea.they are sunk.b.they are unaffected by the allocation of scarce r

27、esources.c.there are no fixed costs associated with scarce resources.d.fixed costs only apply to long-run decisions.ANS:BPTS:1DIF:EasyOBJ:10-4NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling26.The minimum selling price that should be acceptable in a special order si

28、tuation is equal to totala.production cost.b.variable production cost.c.variable costs.d.production cost plus a normal profit margin.ANS:CPTS:1DIF:EasyOBJ:10-6NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling27.Which of the following costs is irrelevant in making a d

29、ecision about a special order price if some of the company facilities are currently idle?a.direct laborb.equipment depreciationc.variable cost of utilitiesd.opportunity cost of productionANS:BPTS:1DIF:EasyOBJ:10-6NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling28.Th

30、e _ prohibits companies from pricing products at different amounts unless these differences reflect differences in the cost to manufacture, sell, or distribute the products.a.Internal Revenue Serviceb.Governmental Accounting Officec.Sherman Antitrust Actd.Robinson-Patman ActANS:DPTS:1DIF:EasyOBJ:10-

31、6NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling29.An ad hoc sales discount isa.an allowance for an inferior quality of marketed goods.b.a discount that an ad hoc committee must decide on.c.brought about by competitive pressures.d.none of the above.ANS:CPTS:1DIF:Mo

32、derateOBJ:10-6NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling30.A manager is attempting to determine whether a segment of the business should be eliminated. The focus of attention for this decision should be ona.the net income shown on the segments income statement

33、.b.sales minus total expenses of the segment.c.sales minus total direct expenses of the segment.d.sales minus total variable expenses and avoidable fixed expenses of the segment.ANS:DPTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling31.Assume a co

34、mpany produces three products: A, B, and C. It can only sell up to 3,000 units of each product. Production capacity is unlimited. The company should produce the product (or products) that has (have) the highesta.contribution margin per hour of machine time.b.gross margin per unit.c.contribution marg

35、in per unit.d.sales price per unit.ANS:CPTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling32.For a particular product in high demand, a company decreases the sales price and increases the sales commission. These changes will not increasea.sales vo

36、lume.b.total selling expenses for the product.c.the product contribution margin.d.the total variable cost per unit.ANS:CPTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling33.An increase in direct fixed costs could reduce all of the following except

37、a.product line contribution margin.b.product line segment margin.c.product line operating income.d.corporate net income.ANS:APTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling34.When a company discontinues a segment, total corporate costs may decr

38、ease in all of the following categories excepta.variable production costs.b.allocated common costs.c.direct fixed costs.d.variable period costs.ANS:BPTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling35.In evaluating the profitability of a specific

39、 organizational segment, all _ would be ignored.a.segment variable costsb.segment fixed costsc.costs allocated to the segmentd.period costsANS:CPTS:1DIF:EasyOBJ:10-7NAT:AACSB: Reflective ThinkingLOC:AICPA Functional Competencies: Decision Modeling36.Anderson Company uses 10,000 units of a part in it

40、s production process. The costs to make a part are: direct material, $12; direct labor, $25; variable overhead, $13; and applied fixed overhead, $30. Anderson has received a quote of $55 from a potential supplier for this part. If Anderson buys the part, 70 percent of the applied fixed overhead woul

41、d continue. Anderson Company would be better off bya.$50,000 to manufacture the part.b.$150,000 to buy the part.c.$40,000 to buy the part.d.$160,000 to manufacture the part.ANS:CCost to buy: $55/unit * 10,000 units = $550,000Cost to manufacture: $(12+25+13+9)= $59/unitIncremental difference in favor

42、 of buying: $4/unit * 10,000 units = $40,000PTS:1DIF:ModerateOBJ:10-3NAT:AACSB: Analytical SkillsLOC:AICPA Functional Competencies: Decision Modeling37.Credell Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direct labor, $27; variab

43、le overhead, $15; and applied fixed overhead, $32. Anderson has received a quote of $60 from a potential supplier for this part. If Credell buys the part, 75 percent of the applied fixed overhead would continue. Credell Company would be better off bya.$30,000 to manufacture the part.b.$348,000 to bu

44、y the part.c.$60,000 to buy the part.d.$216,000 to manufacture the part.ANS:CCost to buy: $60/unit * 12,000 units = $720,000Cost to manufacture: $(15+27+15+8)= $65/unitIncremental difference in favor of buying: $5/unit * 12,000 units = $60,000PTS:1DIF:ModerateOBJ:10-3NAT:AACSB: Analytical SkillsLOC:

45、AICPA Functional Competencies: Decision Modeling38.Thomas Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50, and Product Y has a contribution margin of $64. Product X requires 5 hours of machine time, and Product Y re

46、quires 8 hours of machine time. If Thomas Company wants to dedicate 80 percent of its machine time to the product that will provide the most income, the company will have a total contribution margin ofa.$250,000.b.$240,000.c.$210,000.d.$200,000.ANS:BAssume 80% of capacity applied to Product XX: 20,0

47、00 hrs/5 hrs per unit4,000 units * $50 CM/unit$200,000Y: 5,000 hrs/8 hrs per unit 625 units * $64 CM/unit40,000Total$240,000=PTS:1DIF:DifficultOBJ:10-7NAT:AACSB: Analytical SkillsLOC:AICPA Functional Competencies: Decision Modeling39.Henke Company has only 30,000 hours of machine time each month to

48、manufacture its two products. Product X has a contribution margin of $60, and Product Y has a contribution margin of $72. Product X requires 6 hours of machine time, and Product Y requires 10 hours of machine time. If Thomas Company wants to dedicate 85 percent of its machine time to the product tha

49、t will provide the most income, the company will have a total contribution margin ofa.$216,000b.$228,600.c.$287,400d.$300,000ANS:CAssume 85% of capacity applied to Product XX: 25,500 hrs/6 hrs per unit4,250 units * $60 CM/unit$255,000Y: 4,500 hrs/10 hrs per unit 450 units * $72 CM/unit32,400Total$28

50、7,400=PTS:1DIF:DifficultOBJ:10-7NAT:AACSB: Analytical SkillsLOC:AICPA Functional Competencies: Decision Modeling40.Swanson Company has 3 divisions: X, Y, and Z. Division Xs income statement shows the following for the year ended December 31:Sales$1,000,000Cost of goods sold(800,000)Gross profit$ 200

51、,000Selling expenses$100,000Administrative expenses250,000(350,000)Net loss$(150,000)Cost of goods sold is 75 percent variable and 25 percent fixed. Of the fixed costs, 60 percent are avoidable if the division is closed. All of the selling expenses relate to the division and would be eliminated if D

52、ivision X were eliminated. Of the administrative expenses, 90 percent are applied from corporate costs. If Division X were eliminated, Swansons income woulda.increase by $150,000.b.decrease by $ 75,000.c.decrease by $155,000.d.decrease by $215,000.ANS:CSales foregone$(1,000,000)COGS avoided Variable

53、$600,000 Fixed120,000 720,000 Selling Expense Avoided100,000 Administrative Expense Avoided25,000 Decrease in income$( 155,000)=PTS:1DIF:ModerateOBJ:10-7NAT:AACSB: Analytical SkillsLOC:AICPA Functional Competencies: Decision Modeling41.Calvert Company has 3 divisions: A, B, and C. Division As income

54、 statement shows the following for the year ended December 31:Sales$1,500,000Cost of goods sold(1,125,000)Gross profit$ 375,000Selling expenses$125,000Administrative expenses350,000(475,000)Net loss$(100,000)Cost of goods sold is 80 percent variable and 20 percent fixed. Of the fixed costs, 50 perce

55、nt are avoidable if the division is closed. All of the selling expenses relate to the division and would be eliminated if Division A were eliminated. Of the administrative expenses, 85 percent are applied from corporate costs. If Division A were eliminated, Calverts income woulda.increase by $100,00

56、0.b.decrease by $197,500.c.decrease by $310,000.d.decrease by $422,500.ANS:CSales foregone$(1,500,000)COGS avoided Variable$900,000 Fixed112,500 1,012,500 Selling Expense Avoided125,000Administrative Expense Avoided52,500 Decrease in income$( 310,000)=PTS:1DIF:ModerateOBJ:10-7NAT:AACSB: Analytical S

57、killsLOC:AICPA Functional Competencies: Decision Modeling42.Haskins Company is currently operating at a loss of $15,000. The sales manager has received a special order for 5,000 units of product, which normally sells for $35 per unit. Costs associated with the product are: direct material, $6; direc

58、t labor, $10; variable overhead, $3; applied fixed overhead, $4; and variable selling expenses, $2. The special order would allow the use of a slightly lower grade of direct material, thereby lowering the price per unit by $1.50 and selling expenses would be decreased by $1. If Haskins wants this special order to increase the total net income for the firm to $10,000, what sales price must be quoted for each of the 5,000 units?a.