4.( TCO 2) Information pertaining to Brenton Corporation ' s sales revenue is presented in the following table:
February March April Cash Sales $ 160,000 $ 150,000 $ 120,000 Credit Sales 300,000 400,000 280,000
Total Sales $ 460,000 $ 550,000 $ 400,000 Management estimates that 5 % of credit sales are not collectible. Of the credit sales that are collectible, 60 % are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70 % of the next month ' s projected total sales. All purchases of inventory are on account; 25 % are paid in the month of purchase, and the remainder is paid in the month following the purchase. 5.( TCO 2) Financing decisions PRIMARILY deal with:( Points: 5) 6.( TCO 3) The cost components of an air conditioner include $ 35 for the compressor, $ 11.50 for the sheet molded compound frame, and $ 80 per unit for assembly. The factory machines and tools cost is $ 55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs?( Points: 5) 7.( TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?( Points: 5) 8.( TCO 4) Sunk costs:( Points: 5) 9.( TCO 5) Throughput contribution equals revenues minus:( Points: 5) 10.( TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves:( Points: 5) 11.( TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously( Points: 5) 12.( TCO 6) Which of the following is a disadvantage of the physicalmeasure method of allocating joint costs?( Points: 5) 13.( TCO 7) Life-cycle costing is the name given to:( Points: 5) 14.( TCO 7) Each month, Haddon Company has $ 275,000 total manufacturing costs( 20 % fixed) and $ 125,000 distribution and marketing costs( 36 % fixed). Haddon ' s monthly sales are $ 500,000.