15. Which of the following is NOT an effective way of dealing with a production constraint (i.e., bottleneck)? Select one: a. Subcontract work that would otherwise require use of the bottleneck. b. Pay overtime to workers assigned to workstations located after the bottleneck in the production process. c. Reduce the number of defective units produced at the bottleneck. d. Pay overtime to workers assigned to the bottleneck.

“Abnormal rework costs should be charged to a loss account, not to manufacturing overhead.”Do you agree? Explain.

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One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA. technological advances may decrease the effect of direct labor hours as a percentage of total manufacturing costs. B. technological advances may increase direct labor hours as a percentage of total manufacturing costs. OC. direct labor hours may decrease the effect of technological advances. OD. direct labor hours may increase the effect of technological advances.

Which of the following is an example of a variable cost? a.Insurance on the production equipment b.Direct materials c.The production supervisor's salary d.Depreciation of the factory building e.None of these

Which would NOT be relevant in a make- or- buy decision?a) factory deprciation b) direct materials c) variable overhead d) direct labor

5  Why may departmental overhead rates NOT correctly assign overhead costs?   Select one: a. Because of the high correlation between direct labour hours and the incurrence of overhead costs. b. Because of the use of direct labour hours in allocating overhead costs to products rather than machine time or quantity of materials. c. Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. d. Because of the difficulties associated with identifying cost pools for the first stage of the allocation process.

Which of the following would be an inappropriate activity base for allocating factory overhead costs? a. direct labor cost b. machine hours c. salaries of supervisors d. direct labor hours

How should a responsibility-accounting system handle each of the following scenarios? 1. Department A manufactures a component, which is then used by Department B. Department A recently experienced a machine breakdown that held up production of the component. As a result, Department B was forced to curtail its own production, thereby incurring large costs of idle time. An investigation revealed that Department A’s machinery had not been properly maintained.2. Refer to the scenario above, but suppose the investigation revealed the machinery in Department A had been properly maintained.

2. Which of the following statements is false? (You may select more than one answer.)a. The planning horizon for discretionary fixed costs is longer than the planninghorizon for committed fixed costs.b. Discretionary fixed costs can be cut in the short term if necessary, while committed fixed costs cannot be cut for short periods of time.c. As companies increasingly rely on knowledge workers, the labor cost associated withemploying these workers is often committed fixed as opposed to discretionary.d. A mixed cost contains both committed fixed and discretionary elements.