ACCT 434 Course Great Wisdom / tutorialrank.com ACCT 434 Course Great Wisdom / tutorialrank.com | Page 8

assembly. The assembly desk and tools cost $400. A total of 1,000
frames is expected to be produced in the coming year. What cost
function best represents these costs?
3. Question :
(TCO 3) Which cost estimation method uses a formal mathematical
method to develop cost functions based on past data?
4. Question :
(TCO 3) Penny's TV and Appliance Store is a small company that has
hired you to perform some management advisory services. The
following information pertains to 20X8 operations: Sales (2,000
televisions) $900,000; Cost of goods sold $400,000; Store manager's
salary per year $70,000; Operating costs per year $157,000;
Advertising and promotion per year $15,000; Commissions (4% of
sales) $36,000. What are the estimated total costs if Penny's expects to
sell 3,000 units next year?
5. Question :
(TCO 4) The formal process of choosing among alternatives is known
as a(n)
6. Question :
(TCO 4) When using the five-step decision process, which one of the
following steps should be done last?
7. Question :
(TCO 4) Sunk costs
8. Question :
(TCO 4) Northwoods Incorporated manufactures rustic furniture. The
cost accounting system estimates manufacturing costs to be $90 per
table, consisting of 80% variable costs and 20% fixed costs. The