Accounting Question

Post ID: 3382749

Question 1 (25 points)

Match the measure with the performance measure group

Question 1 options:

	Number of new products designed
	Average gross profit per order
	Stock price
	Overall equipment effectiveness
	Market share percentage
	Defect-free units as a percentage of completed units
	Percent of "outstanding" interview candidates that accepted the job offer
	Sales from new customers
	Net profit margin percentage
	Percentage of leadership positions filled with internal candidates

1.	Financial
2.	Customer
3.	Internal business processes
4.	Learning and growth

Question 2 (25 points)

Match the activity to the correct category

Question 2 options:

	Warranty repairs
	Testing and inspecting incoming materials
	Quality circles
	Cost of field servicing and handling complaints
	Rework
	Final product testing
	Final product testing
	Lost sales
	Scrap
	Quality training

1.	Prevention costs
2.	Internal failure costs
3.	Appraisal costs
4.	External Failure Costs

Question 3 (5 points)

A TQM team has recorded the following average times for production:

Wait-2.0 days
Inspection-.5 days
Process-.3 days
Move-.7 days
Queue-7 days

What is the throughput time? Round to two decimal places.

Question 3 options:

Question 4 (5 points)

____ _____ are always irrelevant when choosing among alternatives

Question 4 options:

	Opportunity costs
	Future costs
	Sunk costs
	Alternative costs

Question 5 (5 points)

____ _____ are the potential benefit that is given up when one alternative is selected over another.

Question 5 options:

	Alternative costs
	Sunk costs
	Future costs
	Opportunity costs

Question 6 (15 points)

Sales		600,000
Variable manufacturing costs	240,000
Variable shipping costs	5,000
Commissions	125,000
Contribution margin		250,000

Fixed expenses
General factiory overhead	60,000
Salary of line manager	90,000
Deprciation of equipment	50,000
Advertising-direct	80,000
Rent - gactory space	70,000
General admin expense	20,000
Net operating loss		(120,000)


The rent expense will still exist along with the general factory overhead. There is no other use for the equipment.

What is the financial advantage of dropping the line? Round to the nearest whole number and do not include the comma or dollar sign. The number should be negative if the incremental CM is positive.

Question 6 options:

Question 7 (10 points)

Turnhilm, Incorporated is considering adding a small electric mower to its product line. Management believes that in order to be competitive, the mower cannot be priced above $139. The company requires a minimum return of 25% on its investments. Launching the new product would require an investment of $8,000,000. Sales are expected to be 40,000 units of the mower per year. Compute the target cost of a mower. Round to a whole number and don't use the dollar sign.

Question 7 options:

Question 8 (10 points)

Bulldog manufacturing has an opportunity to fill a special order to sell 4,000 units with a selling price of $30 and a variable cost of $18 per unit. They have the capacity to manufacture this order without affecting their other business. This would represent 30% of their capacity and their overhead costs are $500,000. What is the incremental profit on this order. Round to the nearest whole number. Do not include commas or the dollar sign.

Question 8 options:

Question 9 (5 points)

Which of the following evaluation methods doesn't factor in the time value of money?

Question 9 options:

	Payback method
	Net present value
	Internal rate of return

Question 10 (5 points)

Capital budgeting decisions are based on an analysis of cash flow projections

Question 10 options:

	True
	False

Question 11 (10 points)

What is the payback period for the following investment? The investment would be $150,000. Incremental revenue would be $95,000 and incremental costs would be $55,000. What is the payback period? Round your number to two decimal places.

Question 11 options:

Question 12 (10 points)

Which of the following are advantages of the payback method?

Question 12 options:

	Identifies investments that recoup cash investments quickly.
	Ignores the time value of money.
	Serves as a screening tool.
	Ignores the cash flows after the payback period.

Question 13 (5 points)

Which method uses the cost of capital as an input for the evaluation?

Question 13 options:

	Internal Rate of Return
	Payback Method
	Net Present Value

Question 14 (5 points)

Which method or methods use the time value of money?

Question 14 options:

	Net Present Value
	Payback Method
	Internal Rate of Return

Question 15 (5 points)

To determine the present value of a series of payments, you would use the Present Value of $1.

Question 15 options:

	True
	False

Question 16 (5 points)

A company has a weighted average cost of capital of 8%. Using the net present value evaluation method calculated use an 8% discount and calculated a net present value of $500. Should the company make the investment?

Question 16 options:

	Yes
	No