Question 28 (1 point)

A shoe manufacturing company regularly takes manufactured shoes that are "off spec" and spends resources to bring them up to acceptable standards. These additional costs are an example of

spoilage costs

rework costs

joint costs

scrap costs

Question 30

True or False: "Normal spoilage" costs are recognized when the goods are sold.

True

False

Question 31 (1 point)

Management compensation packages can be based on a blend of both financial and non-financial performance measures

True

False

Question: 37

One of the key underlying problems that prevent management compensation packages from being accurate/fair to all parties concerned is

external factors, out of control of management, may affect the organization

1.either in a favourable or unfavourable manner

2.there can be an inherent conflict between short term performance and long term performance

3.all of the listed answers are correct

4.actions of senior management are not necessarily easily observable nor measurable

35 question

the manufacturing process). "Normal spoilage" is budgeted at 30% of the completed & shipped out good units. Inspections occur at the end of the manufacturing process.

For the month of July, unanticipated spoilage problems cost the company

$33,000

$15,833

$15.250

$17,500

Question 36 (1 point)

"Transfer Pricing" decisions have minimal/zero impact on a company's bottom line if all the ompany's divisions operate in the same tax jurisdiction.

True

False

Question 41 (1 point)

For the month of July, the manufacturing Company "X" had zero units in beginning inventory of any kind, and started 1,200 units of which... 700 good units were completed and shipped out; 100 units were in WIP at the end of the month. $100,000 was spent on materials during the month (all incurred at the beginning of the manufacturing process). "Normal spoilage" is budgeted at 30% of the completed & shipped out good units. Inspections occur at the end of the manufacturing process.

For the month of July "abnormal spoilage" was

183 units

400 units

190 units

210 units

Question 44 (1 point)

The basic EOQ model is simplistic in that it ignores

all of the listed answers are correct

"stockouts" can occur

changes in demand for goods can regularly occur

"purchasing costs" can be affected by the size of orders

Question 43 (3 points)

Product "S" is eventually sold for $80,000. It's "separable costs" after the splitoff point are $45,000. Product "T" is eventually sold for $130,000. It's "separable. costs" after the splitoff point are $120,000. Using the NRV method how much of the $45,000 joint costs should be allocated to "S" & "T"

Product S: $35,000 Product T: $10,000

none of the listed answers are correct

Product S: $22,500 Product T: $22,500

O Product S: $10,000 Product T: $35,000