Week 5 ACC 281 quiz

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Ashford University - California *

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281

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Accounting

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Jan 9, 2024

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pdf

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Uploaded by MateMosquito1305

Week 5 - Quiz Due Dec 10 at 11:59pm Points 20 Questions 20 Time Limit 180 Minutes Allowed Attempts 3 Instructions Week 5 Quiz [WLOs: 1, 2, 3] [CLOs: 1, 2, 3, 4, 5, 6] Prior to taking this quiz, read Chapter 11 and Chapter 12 from the textbook. The quiz contains 20 multiple-choice, matching, and true or false questions, and is worth 5% of your course grade. You will have 3 hours to complete the quiz, and it can be repeated three times with the highest score recorded in the gradebook. Click on the Take the Quiz button when you are ready to start this exam. When finished, click on Submit Quiz. Take the Quiz Again Attempt History Attempt Time Score LATEST Attempt 1 41 minutes 20 out of 20 (@ Correct answers are hidden. Score for this attempt: 20 out of 20 Submitted Dec 1 at 4:.55pm This attempt took 41 minutes. Question 1 1/1pts Match the following terms to their definitions:

Controllable variance The difference between v Efficiency variance The difference between ' v Capacity variance The difference between = v Spending variance The difference between v Labor rate variance The difference between = v Question 2 11/1 pts Match the following terms and definitions. Standard cost sheet A summary of the cost fc v Idle capacity The difference between ' v Price standard A generic term that meal v Quantity standard A generic term that mear v Standard cost The combination of a pri v

Question 3 1/1 pts If the AP (actual price) is $3.98 for a medical mask and AQP (actual quantity purchased) is , the total cost would be $159,200. Solve for AQP. 10,000 20,000 30,000 40,000 Question 4 1/1 pts Elements for preparing a standard cost sheet for a medical provider include which of the following? direct medical supplies, direct labor, and overhead type of insurance billed, cost allowance, and contract price Medicare reimbursement, medical supplies, and labor Medicare reimbursement, medical supplies, and overhead Question 5 1/1 pts Labor rates are usually set by contract, negotiations, management, or federal laws or regulations. So why would a labor rate variance occur?

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Labor rates often represent an average for a task, operation, or work center. Standard labor rates may include cost elements beyond the basic labor rate. aandb none of the above Question 6 171 pts What can cause a medical supply usage variance? medical supplies substitutions pilferage waste all of the above Question 7 1/1 pts Which of the following changes would call for a revision to one or more standard costs? expansions or contractions of facilities

changes in management policies that affect the amount of costs and the way costs are accumulated and identified with activities, operations, and services increased experience of employees all the above Question 8 1/1 pts Grinzaid Home Nursing specializes in home nursing services. It bases its overhead on the flexible budget cost function of $33,000 + ($2.40 x labor hours). Normal volume is based on 12,000 labor hours. Standards call for 2 labor hours per patient visited. For the current period, the operating results were as follows: Actual labor hours worked 11,400 Patient visits 5,800 Actual variable overhead costs $28,460 Actual fixed overhead costs $31,950 How much of the budget variance is due to fixed costs? -27,790 -6,330 50 4,110

Question 9 1/1 pts Elaine Alexander, administrator of Peyton Dialysis Clinic, has estimated overhead costs for the year at an expected operating level of 6,000 dialyzer machine hours. Experience indicates variable costs per machine hour as follows: Lubrication S0.75 Supplies 0.30 Power 0.25 Repairs 0.50 Maintenance 0.80 Costs that are fixed are budgeted as follows: Supervision S 4,500 Indirect labor 11,500 Heat and light 3,200 Taxes and insurance 1,600 Depreciation 1,800 During the year, the clinic incurred 5,500 dialyzer machine hours and treated the number of patients that should have been treated in 5,000 dialyzer machine hours. The clinic incurred the following overhead costs:

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Lubrication S 3,900 Supplies 1,700 Power 1,500 Repairs 2,800 Maintenance 4,300 Supervision 4,000 Indirect labor 12,000 Heat and light 3,200 Taxes and insurance 1,400 Depreciation 1,600 $36,400 What is the budget variance (total) for indirect labor, to zero decimals? 417 -1,000 2,417 -4,817 Question 10 1/1 pts Grinzaid Home Nursing specializes in home nursing services. It bases its overhead on the flexible budget cost function of $33,000 + ($2.40 x labor hours).

Normal volume is based on 12,000 labor hours. Standards call for 2 labor hours per patient visited. For the current period, the operating results were as follows: Actual labor hours worked 11,400 Patient visits 5,800 Actual variable overhead costs $28,460 Actual fixed overhead costs $31,950 How much of the budget variance is due to variable costs? -31,280 -4,948 -3,440 620 Question 11 1/1 pts Match the following terms and definitions. Discount factor The multiplier used to de v Discount rate The interest rate used in v Discount The difference between

Discounting The process of reducing v Discount value The value now for an amr v Question 12 1/1 pts Match the following terms and definitions. Going- concern assumption The assumption thatab Time value of money The concept that a future v Marginal tax rate The tax rate that would t v Tax shield The amount of taxes sayv v Premium The amount in excess of v Question 13 171 pts Match the following terms and definitions. Depreciation A noncash business exp v Accelerated depreciation

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Depreciation methods th v Straight-line depreciation A method of depreciatior v Face value The principal amountdu v Inflation General increases in the v Question 14 171 pts Even though a project has a positive net present value, too many attractive projects may exist, given the investment dollars available. Therefore, a system is needed. ranking priority finance positive outcome Question 15 1/1 pts If net present value is , the project should be rejected. negative positive

Zero minus 5 Question 16 1/1 pts The definition of the term “discounting” is the process of increasing a future amount to a present value using a specific interest rate the process of reducing a future amount to a present value using a specific interest rate the process of reducing a future amount to a future value using a specific interest rate all of the above Question 17 1/1 pts With project ranking, all projects are listed according to their rates of return from low to high high to low IRR ranking

COC ranking Question 18 1/1 pts The internal rate of return (IRR) is defined as the rate of return that equates the future value of the future cash inflows with the amount of the capital investment outlay the future value of the future cash inflows with the amount of the capital investment return the present value of the future cash inflows with the amount of the capital investment outlay none of the above Question 19 1/1 pts Avondale Clinic updated its exam rooms with new equipment totaling $100,000. The cash inflow from using the rooms is expected to be $30,000 per year for 8 years. Avondale uses a 15% cutoff rate. What is the payback period, in whole years?

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Question 20 1/1 pts Avondale Clinic updated its exam rooms with new equipment totaling $100,000. The cash inflow from using the rooms is expected to be $30,000 per year for 8 years. Avondale uses a 15% cutoff rate. What is the net present value? $39,166 $140,000 $147,327 $320,000 Quiz Score: 20 out of 20