Course: ACC 203 – Cost Accounting Assignment: Exam 3
1. What is the name of a cost of production process that yields multiple products simultaneously?
A. main
B. joint
C. separable
D. byproduct
2. When a joint production process yields two products with high total sales values relative to the total sales values of other products, those products are called ______.
A. joint products
B. byproducts
C. split off products
D. bundled products
3. Which of the following statements best define split off point in joint costing?
A. It is the juncture at which decisions determining joint costs of various products to be produced are taken.
B. It is the point at which managers decide to discontinue one or more of the products.
C. It is the juncture in a joint production process when two or more products become separately identifiable.
D. It is the point at which the managers decide to outsource some of its production processes.
4. A company produces three products from a joint production process: A, B, and C. As a percentage of total sales value, a represents 50%, B 49.5%, and C .5%. Product C could be considered a ________.
A. main product
B. byproduct
C. waste product
D. primary product
5. Which of the following customer related costs are NOT economically feasible to trace but are related to a customer?
A. the allocation of the cost of travel, lodgings, and meals that result from visiting customers at their locations
B. the additional cost of selling one more unit to a new customer who has never done business with the firm before
C. the shipping costs that result from shipping a package by Fed Ex to a customer when the technology allows a direct match of that c
D. the direct material costs of a product that a customer has purchased
6. Which of the following is a reason to gather data, associate revenues with each customer and develop a system of allocating costs to each customer?
A. ABC systems cannot be implemented without customer profitability reporting−
B. to assure that more resources are committed to loss making customers in an attempt to retain all customers−
C. GAAP requirements for external reporting including 10K disclosures
D. to assure that highly profitable customers get the appropriate level of care and attention
7. Segmenting customers as a result of customer profitability analysis would be done by which of the following groupings?
A. gross margin
B. geography such as state or by zip code
C. operating income
D. total direct costs
8. Which of the following classifications would the cost of visiting customers would most likely fit into?
A. customer sustaining cost−
B. customer output unit level cost−
C. customer batch level cost−
D. corporate sustaining cost−
9. Which of the following classifications would be the most appropriate for the cost of the manager of a retail distribution channel?
A. distribution channel cost−
B. customer batch level cost−
C. customer sustaining cost−
D. corporate sustaining cost−
10. Which of the following classifications would be the most relevant for the costs incurred to process orders?
A. customer batch level cost−
B. corporate sustaining cost−
C. customer sustaining cost−
D. customer output unit level cost−
11. ________ categorizes costs related to customers into different cost pools on the basis of either different classes of cost drivers or different degrees of difficulty in determining the cause and effect (or benefits received) relationships.− − −
A. Customer revenues
B. Customer cost hierarchy
C. Price discounting
D. Customer profitability analysis−
12. Which of the following is an example of division sustaining costs?−
A. corporate brand advertising
B. research and development cost
C. shipment costs
D. corporate administration costs
