Question :
61)
What the cost per bouquet if “super-variable costing” used? 61)
______ : 1196290
61)
What is the cost per bouquet if “super-variable costing” is used? 61)
______ A)
$2.50 B)
$3.75 C)
$4.75 D)
$1.98 E)
$5.50
62)
Which of the following criteria should be used to evaluate management according to critics of absorption costing? 62)
______ A)
The extent to which inventoried costs are decreased. B)
The extent to which production quotas are exceeded C)
we should rely only on financial criteria to measure performance D)
The extent to which operating income is increased in the short run E)
The extent to which financial performance measures are used.
63)
Which of the following would not be a compatible denominator-level concept for absorption costing? 63)
______ A)
theoretical capacity B)
master budget utilization C)
practical capacity D)
normal utilization E)
flexible budget equalization
64)
Theoretical capacity is based on which of the following assumptions? 64)
______ A)
production will occur at peak capacity where feasible (eg except for maintenance downtime) B)
that absorption costing is used C)
that variable costing is used D)
production will occur at peak efficiency all the time E)
production will occur at peak capacity where feasible (eg except for maintenance and repairs)
65)
Practical capacity is based on which of the following assumptions? 65)
______ A)
production can never occur at peak capacity B)
that variable costing is used C)
production will occur at peak capacity where feasible (eg except for maintenance downtime, repairs, holidays etc) D)
production will occur at peak efficiency all the time E)
that absorption costing is used
66)
The denominator-level concept based on capacity utilization that satisfies average customer demand that includes seasonal and cyclical factors, is called, 66)
______ A)
master budget utilization. B)
theoretical capacity. C)
normal capacity utilization. D)
flexible budget equalization. E)
practical capacity.
67)
The denominator-level concept based on capacity utilization based on the anticipated level of capacity utilization for the next budget period, is called, 67)
______ A)
practical budget capacity. B)
master budget utilization. C)
flexible budget equalization. D)
theoretical budget capacity. E)
normal capacity utilization.
68)
A major reason for choosing ________ utilization over ________, is the difficulty in forecasting. 68)
______ A)
master budget; theoretical capacity B)
practical capacity; master budget C)
normal capacity utilization; master budget D)
theoretical capacity; master budget E)
master budget; normal capacity utilization
69)
A manufacturing firm is able to produce 2,000 pairs of shoes per hour, at maximum efficiency. There are
three eight-hour shifts each day. Production is actually 1,600 pairs of shoes per hour due to unavoidable operating interruptions. The plant is only able to operate for 27 days per month.
What is the theoretical capacity for the month of September? 69)
______ A)
2,000,000 shoes B)
1,036,800 shoes C)
480,000 shoes D)
1,440,000 shoes E)
240,000 shoes
70)
A manufacturing firm is able to produce 2,000 pairs of shoes per hour, at maximum efficiency. There are three eight-hour shifts each day. Production is actually 1,600 pairs of shoes per hour due to unavoidable operating interruptions. The plant is only able to operate for 27 days per month.
What is the practical capacity for the month of September? 70)
______ A)
1,036,800 shoes B)
480,000 shoes C)
240,000 shoes D)
1,440,000 shoes E)
2,000,000 shoes
