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 .