Question : MULTIPLE CHOICE. Choose the one alternative that best completes the statement : 1196095

MULTIPLE CHOICE.

Choose the one alternative that best completes the statement or answers the question. 21)

To encourage the design of products that are simpler to manufacture or less costly to service, would be an example of which cost allocation purpose? 21)

______ A)

to justify costs or compute reimbursements B)

to provide information for economic decisions C)

to measure income and assets for reporting to external parties D)

to determine employee’s wages E)

to motivate managers and employees

22)

All of the following illustrate purposes for allocating costs to cost objects EXCEPT 22)

______ A)

to determine employee’s wages. B)

to motivate employees. C)

to motivate managers. D)

to measure income and assets for reporting to external parties. E)

to provide information for economic decisions.

23)

Deciding whether to make a component part or to purchase it, would be an example of

which cost allocation purpose? 23)

______ A)

to determine employee’s wages B)

to motivate employees C)

to motivate managers D)

to measure income and assets for reporting to external parties E)

to provide information for economic decisions

24)

Which of the following is FALSE concerning which costs in the value chain will be allocated, and the purposes of cost allocation? 24)

______ A)

for the income measurement and external reporting purpose, inventoriable costs under GAAP include only manufacturing and design costs B)

for the cost reimbursement purpose, the particular contract will often stipulate whether all six of the business functions or only a subset of them are to be reimbursed C)

for the economic decision purpose, the costs in all six business functions should be included D)

for product pricing, the costs in all six business functions should be included E)

for the motivation purpose, costs for only one function is often included

25)

Which of the following criteria subsidizes poor performers at the expense of the best performers? 25)

______ A)

benefits expended B)

benefits-received C)

ability to bear D)

cause-and-effect E)

equity

26)

The belief that a corporate division with higher sales ought to be allocated more of the company’s advertising costs because it must have derived more benefit from the expenditures than a division with lower sales did, is an example of which criteria for cost allocation decisions? 26)

______ A)

cause-and-effect B)

ability to bear C)

benefits-expended D)

benefits-received E)

fairness and equity

27)

Which of the following is NOT a

common criteria used to guide decisions related to cost allocations? 27)

______ A)

cause-and-effect B)

ability to bear C)

fairness and equity D)

benefits-received E)

stable market prices

28)

All of the following, EXCEPT ________ are indicated in survey evidence as reasons that Canadian companies allocate corporate and support costs to divisions and departments. 28)

______ A)

to promote effective resource utilization B)

accountability C)

to evaluate revenue centres D)

to foster cost awareness E)

to evaluate profit centres.

29)

Which of the following is TRUE concerning cost allocation in a multi-product company? 29)

______ A)

Where the indirect costs are variable and each product is assembled sequentially. the cause-and-effect criterion can guide the choice of a cost allocation base. B)

Where the indirect costs are fixed and each product is assembled sequentially. the cause-and-effect criterion can guide the choice of a cost allocation base. C)

Where the indirect costs are variable and each product is not assembled sequentially. the cause-and-effect criterion can guide the choice of a cost allocation base. D)

Where the indirect costs are variable and the products are produced jointly, it is not possible to identify specific cause-and-effect relationships between work on an individual product and total costs incurred. E)

Where the indirect costs are fixed and each product is not assembled sequentially. the cause-and-effect criterion can guide the choice of a cost allocation base.

30)

A grouping of individual cost items is known as 30)

______ A)

an allocation base. B)

a cost pool. C)

grouped direct costs. D)

grouped indirect costs. E)

a homogenous cost group.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.