Exam 1
Final Grade
SUBMITTED 2/13/26
1 MULTIPLE CHOICE CORRECT 3/3
The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct
materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked
on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies
manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14
per machine-hour. The total cost for the job on its job cost sheet would be:
$2,287
$3,925
Correct: $4,900
Correct answer
$4,715
2 MULTIPLE CHOICE CORRECT 3/3
Which of the following statements best describes the traditional view of quality?
Correct: The traditional view of quality holds that firms can reduce total costs by
tolerating some level of defective goods.
Correct answer
The traditional view of quality assumes that improving quality never requires increasing
costs.
The traditional view of quality holds that firms can reduce total costs by producing
higher-quality goods.
, All of the answers are correct.
3 MULTIPLE CHOICE CORRECT 3/3
Cost-volume-profit analysis includes some inherent, simplifying assumptions. Which of the
following is not one of these assumptions?
Changes in beginning and ending inventory levels are insignificant in amount.
Correct: Sales mix will change as fixed costs increase beyond the relevant range.
Correct answer
Cost and revenues are predictable and are linear over the relevant range.
Variable costs fluctuate proportionally.
4 MULTIPLE CHOICE INCORRECT 0/3
Refer to Three Dog Bite Company. What are the total appraisal costs?
Three Dog Bite Company:
Warranty claims $ 170,000
Product liability lawsuits 200,000
Rework costs 600,000
Quality training 245,000
Inspection of incoming materials 450,000
Statistical process control 550,000
Waste 325,000
Field testing at customer sites 245,000
, Total yearly sales $50,000,000
$570,000
$245,000
Correct answer
$770,000
Incorrect: $1,245,000
5 TRUE/FALSE CORRECT 3/3
Because continuous improvement is very difficult, the emphasis in the balanced scorecard tends
to be on meeting preset standards.
True
False Correct answer
6 MULTIPLE CHOICE CORRECT 3/3
The Sarbanes-Oxley Act of 2002 has increased the interaction between the audit committee of the
board of directors and the which of the following?
Correct: internal auditor.
Correct answer
treasurer.
production manager.
Final Grade
SUBMITTED 2/13/26
1 MULTIPLE CHOICE CORRECT 3/3
The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct
materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked
on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies
manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14
per machine-hour. The total cost for the job on its job cost sheet would be:
$2,287
$3,925
Correct: $4,900
Correct answer
$4,715
2 MULTIPLE CHOICE CORRECT 3/3
Which of the following statements best describes the traditional view of quality?
Correct: The traditional view of quality holds that firms can reduce total costs by
tolerating some level of defective goods.
Correct answer
The traditional view of quality assumes that improving quality never requires increasing
costs.
The traditional view of quality holds that firms can reduce total costs by producing
higher-quality goods.
, All of the answers are correct.
3 MULTIPLE CHOICE CORRECT 3/3
Cost-volume-profit analysis includes some inherent, simplifying assumptions. Which of the
following is not one of these assumptions?
Changes in beginning and ending inventory levels are insignificant in amount.
Correct: Sales mix will change as fixed costs increase beyond the relevant range.
Correct answer
Cost and revenues are predictable and are linear over the relevant range.
Variable costs fluctuate proportionally.
4 MULTIPLE CHOICE INCORRECT 0/3
Refer to Three Dog Bite Company. What are the total appraisal costs?
Three Dog Bite Company:
Warranty claims $ 170,000
Product liability lawsuits 200,000
Rework costs 600,000
Quality training 245,000
Inspection of incoming materials 450,000
Statistical process control 550,000
Waste 325,000
Field testing at customer sites 245,000
, Total yearly sales $50,000,000
$570,000
$245,000
Correct answer
$770,000
Incorrect: $1,245,000
5 TRUE/FALSE CORRECT 3/3
Because continuous improvement is very difficult, the emphasis in the balanced scorecard tends
to be on meeting preset standards.
True
False Correct answer
6 MULTIPLE CHOICE CORRECT 3/3
The Sarbanes-Oxley Act of 2002 has increased the interaction between the audit committee of the
board of directors and the which of the following?
Correct: internal auditor.
Correct answer
treasurer.
production manager.
