Acc 3

Y = m(X) is the formula for a(n): A) Activity cost B) Variable cost C) Fixed cost D) Mixed cost

B) Variable cost

The document listing the quantities of materials and parts needed by the production department is referred to as a: A) Operations list B) Bill of lading C) Production order D) Materials requisition

D) Materials requisition

Determining the credit and payment policies for customers is part of the: A) Revenue process B) Collection process C) Expenditure process D) Conversion Process

A) Revenue process

Which of the following is not part of the conversion process? A) Machine set ups. B) Paying for the raw material used in production. C) Storing the raw material used in production. D) Storing finished manufactured goods until sold

B) Paying for the raw material used in production.

A cost that is constant per unit but varies in total is called a(n): A) Activity cost B) Variable cost C) Fixed cost D) Mixed cost

B) Variable cost

Fixed Cost

A cost that does not change in total as the amount of activity changes

Mixed Cost

A cost that varies, but not proportionately, to a change in activity.

Which of the following is not part of the revenue process? A) Receive and accept order for goods and services B) Receive goods and services C) Receive payments for goods and services rendered D) Provide customer support

B) Receive goods and services

A cost that increases in total but decreases per unit as the cost driver increase is a(n): A) Activity cost B) Variable cost C) Fixed cost D) Mixed cost

D) Mixed cost

Relevant Range

The span of operating activity that is considered normal for a company.

Activity Driver

Basis that reflect the consumption or provision of resources.

Mixed Revenue

A revenue that changes, but not proportionately, to a change in activity.

A linear regression analysis indicated a constant of 6,025.50, an X coefficient of 24.75, and an R-squared of 0.65. The estimated cost when the independent variable is 350 is: A) $55,386 B) $14,688 C) $11,657 D) $10,629

B) $14,688

A document sent by the purchasing department to order a specific quantity of goods or services is called a: A) Vendor invoice B) Purchasing report C) Purchase order D) Purchase requisition

C) Purchase order

Goods shipped from a seller's warehouse on June 10, 2006, arrived at the buyer's warehouse on June 16, 2006. The invoice for the goods arrived at the buyer's accounting department on June 13, 2006 and was paid on June 20, 2006. If the goods were sold FOB destination, the buyer took legal title on: A) June 20, 2006 B) June 13, 2006 C) June 10, 2006 D) June 16, 2006

D) June 16, 2006

Variable Cost

A cost that changes in direct proportion to the change in activity.

Fixed Revenue

A revenue that does not change in total as activity changes.

Variable Revenue

A revenue that changes in direct proportion to the change in activity.

A linear regression analysis indicated a constant of 895.00, an X coefficient of 125.60, and an R-squared of 0.72. The dollar value of the dependent variable given an independent variable of 275 is: A) $35,435 B) $35,184 C) $25,764 D) $27,555

A) $35,435

Decatron, Inc. purchased $76,500 of parts from a vendor who offered credit terms of 3/15, n/45. If Decatron takes advantage of the discount, the amount paid to the vendor (rounded to the nearest dollar) will be: A) $74,205 B) $76,500 C) $76,271 D) cannot be determined from the information given

A) $74,205

Shipping terms indicating that legal title passes to the buyer when goods arrive at the buyer's warehouse are: A) FOB destination B) FOB shipping point C) FOB shipping invoice D) FOB purchase order

A) FOB destination

Delivery of goods is associated with which of the following process? A) Revenue process B) Expenditure process C) Conversion process D) Evaluation process

A) Revenue process

Determining the company's needs for goods and services is associated with which of the following processes? A) Revenue process B) Expenditure process C) Conversion process D) Evaluation process

A) Revenue process

Which of the following is part of the conversion process? A) Storing finished manufactured goods until they are sold B) Accepting orders for manufactured goods. C) Paying salaries for the sales personnel who sell the product D) Pay the freight to deliver the product to the customer

A) Storing finished manufactured goods until they are sold

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10, n/30. Which of the following reflects these terms? A) 20% discount (2/10) if paid within 30 days B) 2% discount if paid within 30 days C) 10% discount if paid within 30 days and 2% after 30 days D) 2% discount if paid between 10 and 30 days.

B) 2% discount if paid within 30 days

FOB shipping point indicates that goods in transit belong to the: A) Seller B) Buyer C) Common carrier D) either the buyer or seller depending upon the terms of the bill of lading

B) Buyer

Selecting suppliers for a company's goods and services is part of the: A) Revenue process B) Expenditure process C) Selection process D) Conversion process

B) Expenditure process

Which of the following would not be collected from the customer when an order is received? A) Type of inventory ordered B) Name of common carrier that will deliver the goods C) Price Quoted D) Delivery Date E) All of the above will be collected

B) Name of common carrier that will deliver the goods

Tri-State Corporation ordered materials from Down-State Manufacturing on October 1, 2006. Down-State shipped the materials by rail on October 5 and the railroad notified Tri-State on October 12, that the goods had arrived. Tri-State picked up the materials on October 13. The terms of the sale are FOB shipping point. On what date should Tri-State consider this a purchase? A) October 1 B) October 5 C) October 12 D) October 13

B) October 5

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10, n/30. If Veta takes advantage of the discount, the amount paid to the vendor (rounded to the nearest dollar) will be: A) $14,650 B) $14,621 C) $14,357 D) $13,185

C) $14,357

Non Troppo Corporation has the following cost formula: Y=30(X) + $250,000. If Non Troppo sells 7,000 units, what will its total cost be? A) $210,000 B) $250,000 C) $460,000 D) Unable to determine from the information given

C) $460,000

The Quinter Corporation ordered material for its manufacturing process with a price of $75,000 and that had terms of 1/10 net/30. What is the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement? A) $67,500 B) $75,000 C) $74,250 D) $52,500

C) $74,250

Manufacturing products is associated with which of the following processes? A) Revenue process B) Expenditure process C) Conversion process D) Evaluation process

C) Conversion process

Goods shipped from a seller's warehouse on Nov 10, 2006, arrived at the buyer's warehouse on Nov 16, 2006. The invoice for the goods arrived at the buyer's accounting department on Nov 13, 2006 and was paid on Nov 20, 2006. If the goods were sold FOB shipping point, the buyer took legal title on: A) Nov 20, 2006 B) Nov 13, 2006 C) Nov 10, 2006 D) Nov 16, 2006

C) Nov 10, 2006

The purchase order originates with the: A) Vendor B) Receiving department C) Purchasing department D) Manufacturing department needing the goods or services

C) Purchasing department

A sales invoice originates with the: A) Vendor B) Purchasing Department C) Sales Department D) Accounting Department

C) Sales Department

The "I Can't Believe It's Yogurt" shop sells only yogurt and only in cups. Which of the following would be a variable cost if number of customers is the cost driver? A) Rent on the shop B) Wages C) Spoons D) Electricity

C) Spoons

The formula for a mixed cost is: A) Y = b B) Y = m(X) C) Y = m(X) + b D) Y = m(X) + b(X)

C) Y = m(X) + b

The Banner Company ordered $50,000 of fertilizer from Farmland Industries and were given terms of 2/15 net/60. Which of the following describes how soon the payment must be made in order to receive a discount and the amount of the discount available. Payment Made Within Amount of Discount A) Between 2 and 15Days $20,000 B) 60 Days $ 7,500 C) Between 2 and 15 $ 1,000 D) Within 15 Days $ 1,000

D) Within 15 Days $ 1,000

Carmen Corporation ordered materials from Bizet Manufacturing on November 1, 2006, Bizet shipped the materials by barge on November 5 and the barge company notified Carmen on November 22, that the goods had arrived. Carmen picked up the materials on November 23. The terms of the sale are FOB destination. On what date should Carmen consider this a purchase? A) November 1 B) November 5 C) November 22 D) November 23

D) November 23

Which of the following activity bases would be the best cost driver for flour costs for a pizzeria? A) Number of customers B) Hours of operation C) Number of employees D) Number of pizzas

D) Number of pizzas

In linear regression analysis, the dependent variable is: A) Labeled X in the linear equation B) Referred to as the intercept C) The cost driver D) The total variable cost

D) The total variable cost

Which of the following is not part of the expenditure process? A) Receiving goods and services B) Paying suppliers C) Ordering goods and services D) Using equipment to manufacture products

D) Using equipment to manufacture products

Which of the following is not information that a company should collect from a customer when it receive an order? A) Address B) Inventory ordered C) Credit information D) How goods will reach the customer E) All of the above should be collected

E) All of the above should be collected

Cost Behavior

How a cost reacts to change in the level of operating activity

Revenue Behavior

How a revenue reacts to a change in the level of operating activity.