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NEW QUESTION 50
All of the following are limitations of teaming curve analysis except that

A. the estimated learning rate might be unreliable because other factors could have caused the changeB. it is appropriate only for labor-intensive repetitive tasksC. the learning rate tends to be affected by seasonality in salesD. the learning rate is assumed to be constant

Answer: C

 

NEW QUESTION 51
Sportsman inc. manufactures ceramic sports-related figurines. The company's oldest lines are mass produced in a standard variety of colors and designs. A few years ago in an effort to increase sales, the company began accepting special orders with modified designs in school colors. The minimum order for these special designs is 100 units. The special orders have become very popular and now represent one quarter of the units produced. Estimates for the year follow.

Design costs manufacturing overhead and materials handling costs are budgeted at $700.000 for the year Sportsman has always used a traditional cost allocation system using aired labor hours as the allocation base but is considering an activity based costing system. The most likely result of changing to an activity-based system is that

A. total production costs are likely to decline as department are held responsible for their costsB. the overhead costs allocated to the special designs will likely increase because the special design requires proportionally more overhead activityC. the costs allocated to each product should not change but management will be able to control various components of the cost more effectively.D. the overhead costs allocated to the special designs will likely decrease Because demand for them has grown

Answer: B

 

NEW QUESTION 52
Which one of the following statements describes now Section 302 of the Sarbanes-Oxley Act impacts a company's Internal control environment?

A. The auditor is more independent because non-audit services are prohibitedB. Executives are more supportive since they certify their responsibility for the systemC. The board s financial expertise improves because a financial expert is appointedD. Greater external scrutiny results because a new auditor must be appointed annually

Answer: B

 

NEW QUESTION 53
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