You can take the self-study quizzes before or after going through the material. These quizzes exist to test your knowledge of the material and are part of your grade.  You can take each quiz multiple times. Once you have completed the quiz you can show your results in two ways:

1. Copy and paste it on to a word document and attach it to the discussion post below or

2. By making use of snipping tool or PrtScn (Print Screen) take the image of the result part showing that you have got 100% correct answers and paste that image in the discussion post below

In order to get full credit for this activity you need to score 100% on the quiz from every Chapter. 

To access the quiz please use the links given below or you can also access them through the Assignments tab – Week 6 Additional Resources:

Chapter 11 mcqs

How is a company's return on investment computed?

A) 

Margin divided by turnover

B) 

Turnover divided by average operating assets

C) 

Margin times turnover

D) 

Margin times average operating assets

 

 

 

2  

Which of the following is not considered an operating asset for purposes of calculating return on investment?

A) 

Cash

B) 

Investment in common stock

C) 

Inventory

D) 

Plant equipment

 

 

 

3  

Assuming that sales and net income remain the same, a company's return on investment will:

A) 

increase if its operating assets increase.

B) 

decrease if its operating assets decrease.

C) 

decrease if its turnover decreases.

D) 

decrease if its turnover increases.

 

 

 

4  

The Central Division of Burlington Company reported the following operating data for the past year:

 

What was the division's margin?

A) 

12.50%

B) 

13.00%

C) 

14.75%

D) 

15.00%

 

 

 

5  

The Central Division of Burlington Company reported the following operating data for the past year:

 

(Note that this is the same data that was provided for the previous question.) What was the division's turnover?

A) 

2

B) 

4

C) 

10

D) 

25

 

 

 

6  

The following data are available for the Appliance Division of Homeware Company and the single product it sells:

 

How many units must the division sell each year to achieve an ROI of 16%?

A) 

52,000

B) 

65,000

C) 

240,000

D) 

1,300,000

 

 

 

7  

The Great Lakes Company reported the following operating data for the past year:

 

What was the company's minimum required rate of return?

A) 

11%

B) 

12%

C) 

13%

D) 

14%

 

 

 

8  

The D'Azure Company uses residual income to measure the performance of one of its divisional managers. Which of the following would increase the division manager's performance measure?

A) 

A decrease in the division's average operating assets

B) 

A decrease in the division's net operating income

C) 

An increase in the division's average operating assets

D) 

An increase in the minimum required return

 

 

 

9  

Which of the following statements is not correct?

A) 

Delivery cycle time is a key concern to many customers.

B) 

Manufacturing cycle time is made up of wait time, process time, inspection time, move time, and queue time.

C) 

Non-value-added activities include inspecting, moving, and queuing.

D) 

Manufacturing cycle efficiency is computed by dividing value-added time by throughout time.

 

 

 

10  

Which of the following statements is not correct?

A) 

Financial measures such as ROI and residual income may be included in a balanced scorecard.

B) 

Operating measures such as delivery cycle time may be included in a balanced scorecard.

C) 

Top managers who translate strategy into performance measures that employees understand and influence are following a balanced scorecard approach.

D) 

Incentive compensation for employees, such as bonuses, should not be tied to balanced scorecard performance measures.

Chapter 12 mcqs

 

 

The following are the unit costs of making and selling an item at a volume of 30,000 units per month (which represents the company's capacity):

 

Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. What cost is relevant as a guide for setting a minimum selling price on these defective units?

A) $8 per unit

B) $18 per unit

C) $32 per unit

D) $36 per unit

 

 

 

2  

The Weiden Corporation has 8,000 obsolete units of a product that are carried in inventory at a manufacturing cost of $160,000. If the units are remachined for $40,000, they could be sold for $72,000. Alternatively, the units could be sold for scrap for $28,000. Which alternative is more desirable and what is the relevant cost?

A) Remachine; $40,000

B) Remachine; $200,000

C) Scrap; $132,000

D) Scrap; $160,000

 

 

 

3  

A study has been conducted to determine if one of the product lines of Saugatuck Company should be discontinued. This product line generates a contribution margin of $300,000 per year. Fixed expenses allocated to the product line are $390,000 per year. It is estimated that $240,000 of these fixed expenses could be eliminated if the product line is discontinued. What is the impact on the company's overall net operating income if the product line is discontinued?

A) Decrease of $60,000 per year

B) Increase of $60,000 per year

C) Decrease of $150,000 per year

D) Increase of $150,000 per year

 

 

 

4  

Ferguson Company manufactures 4,000 parts per year; the parts are used in the assembly of one of the company's products. The unit product cost of these parts is:

 

The part can be purchased from an outside supplier at $40 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. What is the impact on the company's net operating income if the part is purchased from the outside supplier?

A) Increase of $8,000

B) Decrease of $8,000

C) Increase of $16,000

D) Decrease of $16,000

 

 

 

5  

The managers of a firm are in the process of deciding whether to accept or reject a special order for one of its products. Which cost is not relevant to this decision?

A) Common fixed overhead that will continue if the special offer is not accepted

B) Direct materials

C) Fixed overhead that will be avoided if the special offer is accepted

D) Variable overhead

 

 

 

6  

Bell Corporation manufactures solar-powered calculators. The company can manufacture 1,200,000 calculators a year at a variable cost of $3,000,000 and a fixed cost of $1,800,000. Based on management's projections for next year, 960,000 calculators will be sold at the regular price of $20.00 each. A special order has been received for 240,000 calculators to be sold at a 70% discount off the regular price. Total fixed costs would be unaffected by this order. What is the increase in net operating income if the special order is accepted?

A) $480,000

B) $600,000

C) $840,000

D) $1,440,000

 

 

 

7  

Canal Company sells its product for $126 per unit. The company's unit product cost, based on the full capacity of 300,000 units, is as follows:

 

A special order offering to buy 120,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be $18 per unit for shipping. The company has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is fixed and would not be affected by this order. What is the minimum acceptable selling price per unit that should be used in negotiating a price for the special order?

A) $84

B) $90

C) $96

D) $108

 

 

 

8  

Consider the following production and cost data for the two versions of the product that is manufactured and sold by Kensington Corporation:

 

Only 260,000 machine set-ups can be performed each year due to limited supply of skilled labor. There is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each year?

A) $3,380,000

B) $3,900,000

C) $3,640,000

D) $7,280,000

 

 

 

9  

Leonard Pottery makes plates, bowls, and platters using glazes that develop starburst patterns when the pottery is fired. The art of creating this pottery, which includes throwing, bisquing, and glazing, is a craft that takes years of experience to master. The demand for the company's pottery far exceeds the company's studio capacity. Information concerning three of the company's products follows.

 

More time could be made available by asking employees in the studio to work overtime. Assuming that this extra time would be used to produce bowls, how much should the company be willing to pay per hour to keep the studio open after normal working hours?

A) $7

B) $24

C) $26

D) $72

 

 

 

10  

Ciaran Corporation manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $50,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: Product X, $25,000; Product Y, $45,000; and Product Z, $30,000. Each product may be sold at the split-off point or processed further. The additional processing costs and the sales value after further processing for each product (on an annual basis) are as follows.

 

Which product or products should be processed further?

A) Product X

B) Product X and Y

C) Product X and Z

D) Products Y and Y