Which of the following statements about the theory of constraints is (are) true?(A) The theory of constraints focuses on determining the optimal product mix when one or more resources restrict the attainment of a goal or objective.(B) The theory of constraints focuses on maximizing the rate of throughput contribution while minimizing investment and other operating costs. (Points : 1) only A.only B.neither A nor B is true.both A and B are true.3. A company is considering the use of a single-stage cost allocation process. Under what conditions would this choice be justified? (Points : 1) The company has many service departments but only one production department.The company produces a few products with similar characteristics in a few departments.The company has no service departments but many production departments.The company produces a wide selection of products in a single production department.4. Which of the following would be the least appropriate allocation base for allocating overhead in a highly automated (i.e., capital-intensive) manufacturing company? (Points : 1) electricity usedmachine hoursdirect labor hoursmaterial consumed5. The loan department of a financial corporation makes loans to businesses. The costs of processing these loans are often several thousand dollars. All loans are initially evaluated using the same financial analysis software, but some require outside services such as appraisals and legal services. Which is the most appropriate costing system for the loan department? (Points : 1) job-order costingprocess costingoperation costingbatch costing6. A manager is trying to estimate the manufacturing costs of a new product. The company makes several other products that utilize some of the same manufacturing procedures as the new product. Which cost estimation method would be the best method to determine the total cost of manufacturing the new product? (Points : 1) engineering estimatesregression analysisaccount analysisscattergraphhigh-low 7. Which of the following statements regarding the two-stage cost allocation process is (are) false? (A) If a company has three cost pools, then it will also have three different cost allocation bases.(B) The selection of an appropriate cost allocation base is more important for single-stage cost allocation systems than for two-stage cost allocation systems. (Points : 1) Only A is falseOnly B is false.Both A and B are false.Neither A nor B is false.8. Which of the following statements is (are) false regarding cost allocations and product costing?(A) It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler.(B) In general, indirect costs are assigned, while direct costs are allocated. (Points : 1) Only A is falseOnly B is false.Both A and B are false.Neither A nor B is false.9. Which of the following statements regarding special orders is (are) true?(A) The primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order.(B) The differential analysis approach to pricing for special orders could lead to underpricing in the long-run because fixed costs are not included in the analysis. (Points : 1) only A.only B.neither A nor B is false.both A and B are true.10. Which of the following costs would most likely be classified as variable assuming the account analysis method is used to determine cost behaviors? (Points : 1) indirect materials.supervisory salariesequipment maintenanceannual Christmas partybuilding occupancy costs.
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