McDevitt Company employs six individuals. Each is paid $12.50 per hour. How would total costs of personnel be classified? (Points : 3) Fixed cost within relevant range Variable Mixed Variable cost within relevant range

The cost function y = 1,000 + 5X (Points : 3)

represents a fixed cost. is a straight line. has an intercept of five. has a slope coefficient of 1,000.

Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? (Points : 3)

Quantitative analysis Industrial engineering Account analysis Conference

Penny's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations. Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager's salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000. What were total fixed costs for 20X2? (Points : 3)

$227,000 $242,000 $436,000 $678,000

The formal process of choosing among alternatives is known as a(n) (Points : 3)

prediction model. alternative model. decision model. relevant model.

When using the five-step decision process, which one of the following steps should be done first? (Points : 3)

Implementing the decision Evaluation and feedback Identify problem Choose an alternative

A computer system installed last year is an example of a(n) (Points : 3)

avoidable cost. differential cost. relevant cost. sunk cost.

Northwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full costs. Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables. What is the lowest price Northwoods should bid on this special order? (Points : 3)

$6,300 $13,500 $9,000 $7,200

In the theory of constraints, the only direct costs are (Points : 3)

direct material, direct labor, and variable overhead costs. investment costs. direct material. direct material and direct labor.

Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves (Points : 3)

keeping the bottleneck resource busy at least 90% of the time. maximizing the contribution margin of the nonbottleneck operation. having the workers at the nonbottleneck operation or machine improving their productivity. None of the above