Solutions for Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Hilton

TEST BANK MANAGERIAL ACCOUNTING: CREATING VALUE IN A
aa aa aa aa aa aa aa


DYNAMIC BUSINESS ENVIRONMENT, 13TH EDITION
aa aa aa aa aa


BY RONALD HILTON aa aa aa




Appendix III aa


1) The aaEOQ aamodel aais aaa aamathematical aatool aafor aadetermining aathe aaorder aaquantity aathat:
A) maximizes aathe aacosts aaof aaordering aaand aaholding aainventory.
B) equals aathe aacosts aaof aaordering aaand aaholding aainventory.
C) minimizes aathe aacosts aaof aaordering aaand aaholding All Chapters
aa


inventory.
aa


D) has aano aaeffect aaon aathe aacosts aaof aaordering aaand
aaholding aainventory.


E) none aaof aathese aaanswers aaare
Answers Included aa
aacorrect.




2) Inventory aadecisions aainvolve aaa aadelicate aabalance aabetween aawhich aaof aathe
following aaclasses aaof aacosts?
aa


A) Ordering aacosts, aaadvertising aacosts, aaand aashipping aacosts
B) Advertising aacosts, aaholding aacosts, aaand aashortage aacosts
C) Ordering aacosts, aaholding aacosts, aaand aashortage aacosts
D) Ordering aacosts, aashipping aacosts, aaand aashortage aacosts
E) Shipping aacosts, aaholding aacosts, aaand aashortage aacosts



3) Which aaone aaof aathe aafollowing aais aatrue aaof aaa aajust-in-time aa(JIT) aasystem?
A) JIT aasystem aauses aaa aa“pull” aa approach aato aacontrolling aamanufacturing
B) Inventory aaof aaraw aamaterials aaand aaparts aaare aakept aaas aaa aabuffer
C) Inventory aaof aapartially aacompleted aaparts aaare aakept aaas aaa aabuffer
D) Finished aagoods aaare aakept aaas aaa aabuffer
E) None aaof aathe aaanswers aaare aacorrect



4) Which aaone aaof aathe aafollowing aais aatrue aaof aaEconomic aaOrder aaQuantity aa(EOQ)?
A) The aaEOQ aaapproach aatakes aathe aaview aathat aasome aainventory aais
aanecessary aain aaorder aato aaoptimize aathe aaorder aaquantity
B) Is aacalculates aaas aathe aasquare aaroot aaof aathe aafollowing: aa(2 aa× aaannual
aarequirement aa× aacost aaper aaorder) aa÷ aaannual aaholding aacost aaper aaunit


C) The aagraphical aaapproach aais aaone aamethod aaof aacalculating aaEOQ
D) A aamathematical aatool aafor aadetermining aathe aaorder aaquantity aathat
aaminimizes aathe aacost aaof aaordering aaand aaholding aainventory


E) All aaof aathe aaanswers aaare aacorrect


1

,5) Which aaof aathe aafollowing aais aaa aaway aathat aaJIT aaefficiencies aaare aaachieved?
A) Negotiating aalong-term aasupply aaagreements
B) Eliminating aainspections
C) Reducing aathe aanumber aaof aavendors
D) Making aaless aafrequent aapayments
E) All aaof aathe aaanswers aaare aacorrect



6) Inventory aaholding aacosts aatypically aainclude:
A) clerical aacosts aaof aapurchase-order aapreparation.
B) costs aaof aadeterioration, aatheft, aaor aaspoilage.
C) costs aaassociated aawith aalost aasales aato aacustomers.
D) forgone aainterest aaon aamoney aatied aaup aain aainventory.
E) both aacosts aaof aadeterioration, aatheft, aaor aaspoilage aaand aaforgone aainterest aaon
money aatied aaup aain aainventory.
aa




7) Inventory aaholding aacosts aawould aatypically aainclude aaall aaof aathe aafollowing aaexcept:
A) insurance.
B) theft.
C) transportation.
D) obsolescence.
E) warehouse aarent.



8) Which aaof aathe aafollowing aais aaclassified aaas aaan aainventory aashortage aacost?
A) Purchase aaorder aapreparation
B) Production aadisruption
C) Lost aasales aaand aalost aacustomers
D) Spoilage
E) Both aaproduction aadisruption aaand aalost aasales aaand aalost aacustomers



9) At aathe aaeconomic aaorder aaquantity:
A) total aaannual aainventory aacosts, aaholding aacosts, aaand aaordering aacosts aaare aaall
minimized.
aa


B) total aaannual aainventory aacosts aaand aaholding aacosts aaare aaminimized.
C) total aaannual aainventory aacosts aaare aaminimized, aaand aaholding aacosts aaequal
aaordering aacosts.


D) total aaannual aainventory aacosts aaare aaminimized, aaand aaholding aacosts aaexceed
2

, aaordering aacosts.
E) total aaannual aainventory aacosts aaare aaminimized, aaand aaordering aacosts aaexceed
aaholding aacosts.




3

, 10) Langdon aaEnterprises aauses aaan aaeconomic aaorder aaquantity aamodel aaand aahas
aadetermined aaan aaoptimal aaorder aasize aaof aa2,200 aaunits. aaAnnual aademand aais
aa44,000 aaunits, aaordering aacosts aaare aa$60 aaper aaorder, aaand aaholding aacosts aaare aa$6


aaper aaunit. aaThe aacompany's aaannual aaholding aacosts aatotal:


A) $13,200.
B) $14,400.
C) $485,200.
D) $265,200.
E) none aaof aathe aaanswers aais aacorrect.



11) Langdon aaEnterprises aauses aaan aaeconomic aaorder aaquantity aamodel aaand aahas
aadetermined aaan aaoptimal aaorder aasize aaof aa500 aaunits. aaAnnual aademand aais aa10,000
aaunits, aaordering aacosts aaare aa$50 aaper aaorder, aaand aaholding aacosts aaare aa$4 aaper aaunit.


aaThe aacompany's aaannual aaholding aacosts aatotal:


A) $2,000.
B) $3,000.
C) $21,000.
D) $41,000.
E) none aaof aathe aaanswers aais aacorrect.



12) Reflection aaGraphics aauses aaa aaspecial aapurpose aapaper aaon aa80% aaof aaits aajobs. aaThe
aapaper aais aapurchased aain aa310-sheet aapackages aaat aaa aacost aaof aa$310 aaper aapackage.
aaManagement aaestimates aathat aathe aacost aaof aaplacing aaand aareceiving aaa aatypical


aaorder aais aa$36, aaand aathe aaannual aacost aaof aacarrying aaa aapackage aain aainventory aais


aa$3.60. aaReflection aaGraphics aauses aa4,700 aapackages aaof aapaper aaeach aayear.


aaProduction aais aaconstant, aaand aathe aalead aatime aato aareceive aaan aaorder aais aatwo


aaweek.


The aaeconomic aaorder aaquantity aais aaapproximately:
Note: aaRound aayour aafinal aaanswer aato aathe aanearest aawhole aanumber.
A) 307 aapackages.
B) 4,018 aapackages.
C) 2,093 aapackages.
D) 1,636 aapackages.
E) 1,166 aapackages.




4