========================================= ACCT 434 Midterm Exam ( New )
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5 . ( TCO 11 ) For supply item LK , Boatman Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly . The company has hired a new purchasing agent , who wants to start using the economic-orderquantity method and its supporting decision elements . She has gathered the following information : Annual demand in units 250 Days used per year 250 Lead time , in days 13 Ordering costs $ 100
========================================= ACCT 434 Midterm Exam ( New )
For more course tutorials visit www . uophelp . com
Multiple Choice 10 9 Essay 4 Question 1 . Question : ( TCO 1 ) Which of the following is a sign that an ABC system may be useful ? Question 2 . Question : ( TCO 1 ) Merriamn Company provides the following ABC costing information : Activities Total Costs Activity-cost drivers Account inquiry hours $ 400,000 10,000 hours Account billing lines $ 280,000 4,000,000 lines Account verification accounts $ 150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $ 880,000 How much of account verification costs will be assigned to Department A ? Question 3 . Question : ( TCO 2 ) Budgeting provides all of the following EXCEPT Question 4 . Question : ( TCO 2 ) White planned to use $ 82 of material per unit but actually used $ 80 of material per unit , and planned to