SCM - FINAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
b. Supportive in nature, providing service and assistance to other parts of
organization - A staff position
a. Relates directly to the carrying out of the basic objectives of the organization
b. Supportive in nature, providing service and assistance to other parts of
organization
c. Superior in authority to a line position
d. Both "a" and "b" are correct
c. Integrity - According to the IMA Code of Ethics a practitioner has the
responsibility to recognize professional limitations. Under which standard of
ethical conduct would this responsibility be included?
a. Competency
b. Confidentiality
c. Integrity
d. Objectivity
c. A manager's salary for work performed in the corporate head office -
Which of the following is not a product cost?
a. A processor used to product computers
b. A change in benefits for the union workers who work in the plant
c. A manager's salary for work performed in the corporate head office
,d. Worker's compensation insurance on factory workers wages allocated to the
factory
a. exceed units sold - The amount of income under absorption costing will
be more than the amount of income under variable costing when units
manufactured:
a. exceed units sold
b. equal units sold c. are less than units sold
d. are equal to or greater than units
d. the total contribution margin exceeds the total fixed costs. - After the
level of volume exceeds the break-even point
a. the contribution margin ratio increases.
b. total fixed costs per unit will remain constant.
c. the total contribution margin will turn from negative to positive.
d. the total contribution margin exceeds the total fixed costs.
d. often reveal products that were under- or overcosted by traditional costing
systems. - Activity-based costing systems:
a. use a single, volume-based cost driver.
b. typically use fewer cost drivers than more traditional costing systems.
c. assign overhead to products based on the products' relative usage of direct
labor.
d. often reveal products that were under- or overcosted by traditional costing
systems.
, b. Human Resources - Which of the following departments would be a
service department for a large bakery?
a. Baking
b. Human Resources
c. Mixing
d. Packaging
d. Vice president of production - The inventory control supervisor at
Prague Manufacturing Corporation reported that a large quantity of a part
purchased for a special order that was never completed remains in stock. The
order was not completed because the customer defaulted on the order. The part
is not used in any of Prague's regular products. After consulting with Prague's
engineers, the vice president of production approved the substitution of the
purchased part for a regular part in a new product. Prague's engineers indicated
that the purchased part could be substituted providing it was modified. The units
manufactured using the substituted part required additional direct labor hours
resulting in an unfavorable direct labor efficiency variance in the Production
Department. The unfavorable direct labor efficiency variance resulting from the
substitution of the purchased part in inventory is best assigned to the
a. Sales manager
b. Production manager
c. Inventory supervisor.
d. Vice president of production
b. Determination of product price. - The term relevant cost applies to all
the following decision situations except the
a. Replacement of equipment.
b. Determination of product price.
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
b. Supportive in nature, providing service and assistance to other parts of
organization - A staff position
a. Relates directly to the carrying out of the basic objectives of the organization
b. Supportive in nature, providing service and assistance to other parts of
organization
c. Superior in authority to a line position
d. Both "a" and "b" are correct
c. Integrity - According to the IMA Code of Ethics a practitioner has the
responsibility to recognize professional limitations. Under which standard of
ethical conduct would this responsibility be included?
a. Competency
b. Confidentiality
c. Integrity
d. Objectivity
c. A manager's salary for work performed in the corporate head office -
Which of the following is not a product cost?
a. A processor used to product computers
b. A change in benefits for the union workers who work in the plant
c. A manager's salary for work performed in the corporate head office
,d. Worker's compensation insurance on factory workers wages allocated to the
factory
a. exceed units sold - The amount of income under absorption costing will
be more than the amount of income under variable costing when units
manufactured:
a. exceed units sold
b. equal units sold c. are less than units sold
d. are equal to or greater than units
d. the total contribution margin exceeds the total fixed costs. - After the
level of volume exceeds the break-even point
a. the contribution margin ratio increases.
b. total fixed costs per unit will remain constant.
c. the total contribution margin will turn from negative to positive.
d. the total contribution margin exceeds the total fixed costs.
d. often reveal products that were under- or overcosted by traditional costing
systems. - Activity-based costing systems:
a. use a single, volume-based cost driver.
b. typically use fewer cost drivers than more traditional costing systems.
c. assign overhead to products based on the products' relative usage of direct
labor.
d. often reveal products that were under- or overcosted by traditional costing
systems.
, b. Human Resources - Which of the following departments would be a
service department for a large bakery?
a. Baking
b. Human Resources
c. Mixing
d. Packaging
d. Vice president of production - The inventory control supervisor at
Prague Manufacturing Corporation reported that a large quantity of a part
purchased for a special order that was never completed remains in stock. The
order was not completed because the customer defaulted on the order. The part
is not used in any of Prague's regular products. After consulting with Prague's
engineers, the vice president of production approved the substitution of the
purchased part for a regular part in a new product. Prague's engineers indicated
that the purchased part could be substituted providing it was modified. The units
manufactured using the substituted part required additional direct labor hours
resulting in an unfavorable direct labor efficiency variance in the Production
Department. The unfavorable direct labor efficiency variance resulting from the
substitution of the purchased part in inventory is best assigned to the
a. Sales manager
b. Production manager
c. Inventory supervisor.
d. Vice president of production
b. Determination of product price. - The term relevant cost applies to all
the following decision situations except the
a. Replacement of equipment.
b. Determination of product price.
