ACC 310 Week 2 Quiz
Question 1.1. Which of the following costs are irrelevant for a special order that will allow an organization to utilize some of its present idle capacity? (Points : 1)
Question 2.2. The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000.
Question 3.3. The loan department of a financial corporation makes loans to businesses. The costs of processing these loans are often several thousand dollars. All loans are initially evaluated using the same financial analysis software, but some require outside services such as appraisals and legal services. Which is the most appropriate costing system for the loan department? (Points : 1)
Question 4.4. In a labor intensive company in which more overhead is used by the more highly skilled and paid employees, which activity base would be most appropriate for applying overhead to production? (Points : 1)
Question 5.5. The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000.
Question 6.6. Which cost estimation method does not use the company records as its primary source of information about the relationship between total costs and activity levels? (Points : 1)
Question 9.9. The Wiscow Manufacturing Company recorded overhead costs of $14,182 at an activity level of 4,200 machine hours and $8,748 at 2,300 machine hours. The records also indicated that overhead of $9,730 was incurred at 2,600 machine hours. What is the total estimated cost for 2,600 machine hours using the high-low method to estimate the cost equation? (Points : 1)
Question 10.10. Determining the fixed and the variable components of a mixed cost can be accomplished by several methods. The cost of each method varies in direct relation to its degree of accuracy. Which of the following methods finds the fixed portion of a mixed cost before calculating the variable portion? (Points : 1)