QUESTION41.

Aldebaran designs, produces

and markets two types of fireworks: Chinese Dragon and Space Tornado. They are

made from chemical components assembled in two separate workshops, Workshop 1

and Workshop 2.

The production parameters of these two products are given below:

 Aldebaran's indirect costs are divided into three departments:

Quality

: this

department is responsible for quality control on the various products. It is

considered that the more products are manufactured, the more quality controls

there will be, the more work the department will have. The allocation base

chosen for this center is the total number of quality checks performed. The

total indirect costs of the department are $182,000.

Workshop 1

: this first workshop is responsible for a first assembly of the

fireworks. The allocation base chosen to allocate the indirect costs of

Workshop 1 to the products is the total number of machine hours. The total indirect

costs of Workshop 1 are $126,000.

Workshop 2

: this second workshop finalizes the assembly of the fireworks. In this

Workshop 2, the allocation base chosen to allocate indirect costs to products

is the total number of hours of labor. The total indirect costs of Workshop 2

are $51,000.

In July, we produced and sold 1,000 Chinese Dragons and 2,000 Space

Tornados.

Calculate the unit cost of the allocation base of Workshop 1.

QUESTION19. The basic principle of the

break-even method is based on:

QUESTION9. An allocation ratio or key

corresponds to:

QUESTION15. Which of the following actions

is likely to be most appropriate when identifying relevant costs to make a

decision?

QUESTION58.

Ingenico is an IT services company. The analysis of the profitability of each

mission is carried out based on a full cost of the assignment which includes

the direct cost of the consultants invoiced according to their seniority and a

share of the indirect costs of two analysis centres.

The Administrative Centre

: €362,600  per year. The allocation base is

the number of employee hours invoiced to customers.

The Computer Centre

: €148,000 per year. The

costs of this center are allocated in proportion to the lines of code made for

customers.

For year (N), Ingenico invoiced 25,900 hours of

consultants and created 370,000 lines of code.

Ingenico's management controller

is interested in the profitability of two missions: Master and Class, the

parameters of which are given below.

In addition, the number of lines of code for Master is

2,000 and 3,000 for Class.

What is the full cost of the Class mission?

QUESTION68. PURPLE has established a production budget

for a production quantity of 50,000 units. Its variable costs then amount to

€200,000 and its fixed costs to €120,000. A drop in activity before the end of

December means that it has set a new budget for 45,000 units produced. 

How has its production budget evolved?

Which of the

following decisions

In incremental analysis:

Relevant

costs

What

is the best definition of