Test-bank-for-Chapter-two

TestbankforChaptertwoCHOICE:LEARNINGOBJECTIVE166.Managersshouldfocustheireffortsonmanaging:a.activitiesrequiredtomakeproductsordeliverservicesb.productsandservicesc.revenuesd.Noneoftheseanswersiscorrect67.Whichvaluechainfunctionwouldincludethecostofcomputer-aideddesignequipmentandcosttodeveloptheprototypeofaproduct?a.Thedistributionfunctionwouldincludethesecosts.b.Thedesignofproduct,services,andprocessesfunctionwouldincludethesecosts.c.Theproductionfunctionwouldincludethesecosts.d.Themarketingfunctionwouldincludethesecosts.68.Whichvaluechainfunctionwouldincludedepreciationofplantandmachinery?a.Thedistributionfunctionwouldincludedepreciationofplantandmachinery.b.Thecustomerservicefunctionwouldincludedepreciationofplantandmachinery.c.Theproductionfunctionwouldincludedepreciationofplantandmachinery.d.Themarketingfunctionwouldincludedepreciationofplantandmachinery.69.Whichvaluechainfunctionwouldincludeadvertisingcosts?a.Thedistributionfunctionwouldincludeadvertisingcosts.b.Thecustomerservicefunctionwouldincludeadvertisingcosts.c.Theproductionfunctionwouldincludeadvertisingcosts.d.Themarketingfunctionwouldincludeadvertisingcosts.70.Whichvaluechainfunctionwouldincludedepreciationontransportationcost?a.Thedistributionfunctionwouldincludedepreciationontransportationcost.b.Thecustomerservicefunctionwouldincludedepreciationontransportationcost.c.Theproductionfunctionwouldincludedepreciationontransportationcost.d.Themarketingfunctionwouldincludedepreciationontransportationcost.71.Whichofthefollowingisnotacostdriverofcustomerservicescosts?a.Hoursspentservicingproductsarenotacostdriverofcustomerservicescosts.b.Travelcostsarenotacostdriverofcustomerservicescosts.c.Numberofservicecallsisnotacostdriverofcustomerservicescosts.d.Alloftheseanswersarecorrect.72.Whichofthefollowingwouldbeagoodcostdriverforsalariesofproductandsupervisorysalaries?a.Numberofhoursworkedisagoodcostdriverforsalariesofproductandsupervisorysalaries.b.Numberofpeoplesupervisedisagoodcostdriverforsalariesofproductandsupervisorysalaries.c.Numberofdepartmenttransactionsisagoodcostdriverforsalariesofproductandsupervisorysalaries.d.Numberofcustomersservedisagoodcostdriverforsalariesofproductandsupervisorysalaries.73.Numberofengineeringhoursisalikelycostdriverforwhichvaluechainfunction?a.Theresearchanddevelopmentfunctionhasnumberofengineeringhoursasalikelycostdriver.b.Thedesignfunctionhasnumberofengineeringhoursasalikelycostdriver.c.Themarketingfunctionhasnumberofengineeringhoursasalikelycostdriver.d.Theproductionfunctionhasnumberofengineeringhoursasalikelycostdriver.74.Outputmeasuresofbothresourcesandactivitiesare:a.costdriversb.stagesofproductionc.fixedactivitiesd.variableactivities75._______________ishowtheactivitiesofanorganizationaffectitscosts.a.Costbehaviorb.Costdriverc.Volume-relatedcostdriversd.Noneoftheseanswersiscorrect.LEARNINGOBJECTIVE276.Asthecost-driveractivitylevelincreaseswithintherelevantrange:a.totalfixedcostsremainunchangedb.fixedcostsperunitincreasesc.totalvariablecostsdecreased.variablecostsperunitincreases77.Asthecost-driveractivitylevelincreaseswithintherelevantrange:a.totalfixedcostsincreaseb.fixedcostsperunitdecreasec.totalvariablecostsdecreased.variablecostsperunitdecrease78.Asthecostdriveractivityleveldecreaseswithintherelevantrange:a.totalfixedcostsincreaseb.fixedcostsperunitdecreasesc.totalvariablecostsdecreased.variablecostsperunitdecreases79.Asthelevelofactivitydecreaseswithintherelevantrange:a.totalfixedcostsincreaseb.fixedcostsperunitdecreasesc.totalvariablecostsincreased.variablecostsperunitremainunchanged80.Anaccountantmayhavedifficultyclassifyingcostsasfixedorvariablebecause:a.costsmaybehaveinanonlinearwayb.costsmaybeaffectedbymorethanonecostdriverc.thedecisionsituationmaycausethecoststobefixedintheshorttermd.Alloftheseanswersarecorrect.81.Whenanalyzingcost,thinkof:a.variablecostsasatotalb.variablecostsonaper-unitbasisc.fixedcostsonaper-unitbasisd.variablecostsasatotalandfixedcostsonaper-unitbasis82.Anincreaseinfixedcostsusuallyindicates:a.costdriveractivityisdecreasingb.costdriveractivityisincreasingc.relevantrangeisincreasingd.relevantrangeisdecreasing83.Anincreaseintotalvariablecostusuallyindicates:a.thecost-driveractivitylevelisdecreasingb.thecost-driveractivitylevelisincreasingc.variablecostsperunitisdecreasingd.variablecostsperunitisincreasing84.Fixedcosts:a.arefixedonaper-unitbasis,butvaryintotalb.varyonaper-unitbasis,butarefixedintotalc.arefixedonaper-unitbasis,andfixedintotald.varyonaper-unitbasis,andvaryintotal85.Variablecosts:a.varyperunitb.arefixedintotalc.decreaseintotalasthecost-driveractivitylevelincreasesd.arefixedperunitandvaryintotal86.Relevantrangeappliesto:a.thevariablecostsb.fixedcostsc.bothfixedandvariablecostsd.costdriveractivitylevelsLEARNINGOBJECTIVE387.Thelevelofsalesatwhichrevenuesequalexpensesandnetincomeiszeroiscalledthe:a.marginofsafetyb.contributionmarginc.break-evenpointd.marginalincomepoint88.Themarginofsafety:a.equalsplannedunitsaleslessbreak-evenunitsalesb.showshowactualsalesdifferfromplan