Question :
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement : 1196116
MULTIPLE CHOICE.
Choose the one alternative that best completes the statement or answers the question. 21)
________ is a package of two or more products or services, sold for a single price, where the individual components of the package may also be sold as separate items, each with their own stand-alone price. 21)
______ A)
A bundled product B)
A product package C)
Revenue tracing D)
Revenue allocation E)
A joint product
22)
________ occurs where revenues, related but not traceable to individual products (service, customer, and so on), are assigned to those individual products. 22)
______ A)
Revenue shedding B)
A bundled product C)
Joint product costing D)
Revenue tracing E)
Revenue allocation
23)
Which of the following statements is TRUE? 23)
______ A)
Joint product allocation results in more accurate assignment of revenues to products than does revenue tracing. B)
Joint product allocation results in more accurate assignment of revenues to products than does revenue allocation. C)
Revenue allocation results in more accurate assignment of revenues to products than does revenue tracing. D)
Revenue tracing results in more accurate assignment of revenues to products than does revenue allocation. E)
Revenue allocation results in more accurate assignment of revenues to products than does joint product allocation.
24)
If the market-size variance is $400 U and the sales-mix variance is $500 F, and the market share variance is $300 F, we know that which of the following is TRUE? 24)
______ A)
The sales volume variance is $600 F. B)
The sales volume variance is $600 F, and the sales-quantity variance is $100 F. C)
The sales-quantity variance is $100 U, and the sales volume variance is $600 F. D)
The sales volume variance is $600 U. E)
The sales-quantity variance is $100 U.
25)
Which of the following statements is TRUE? 25)
______ A)
The issues discussed with revenue tracing and sales returns do not apply to cost tracing. B)
The two main classes of revenue allocation methods are the step-up method and the incremental method. C)
The two main classes of revenue allocation methods are the stand-alone method and the incremental method. D)
A bundled product is a package of two or more products or services, sold for multiple prices. E)
The stand-alone revenue allocation method ranks the individual products in a bundle and then uses this ranking to allocate the bundled revenues to these individual products.
26)
________ uses product-specific information pertaining to products in the bundle to determine the weights used to allocate the bundled revenues to those individual products. 26)
______ A)
The weighted averaging approach B)
The incremental revenue-allocation method C)
The averaging approach D)
The joint production costing method E)
The stand-alone revenue allocation method
27)
________ ranks the individual products in a bundle and then uses this ranking to allocate the bundled revenues to these individual products. 27)
______ A)
The weighted averaging approach B)
The averaging approach C)
The joint production costing method D)
The incremental revenue-allocation method E)
The stand-alone revenue allocation method
Use the information below to answer the following question(s).
John’s Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John’s are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows:
Stand-Alone Sales Price
Packaged
Package Game A
Game B Game C Price
Package 1$25$30N/A$44
Package 225N/A$4556
Package 325304576
The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively.
28)
Calculate the weight for Game A in Package 1, using selling prices as the base. 28)
______ A)
$20.00 B)
$30.00 C)
$14.00 D)
$24.00 E)
$25.00
29)
Calculate the weight for Game A in Package 1, using unit costs as the base. 29)
______ A)
$13.97 B)
$20.84 C)
$23.16 D)
$12.57 E)
$22.00
30)
Which of the following is NOT one of the items that are important to managers when analyzing sales-volume variance information? 30)
______ A)
the sales-mix variance B)
budget contribution margin C)
whether budgeted and actual total units are equal D)
how many products were produced during the period E)
the sales quantity variance
Use the information below to answer the following question(s).
John’s Video Game Outlet encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the video games are sold as a single package. Managers at John’s are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone prices of its individual products is as follows:
Stand-Alone Sales Price
Packaged
Package Game A
Game B Game C Price
Package 1$25$30N/A$44
Package 225N/A$4556
Package 325304576
The unit manufacturing costs are $3.60, $4.00, and $5.00 for games A, B, and C, respectively.
