1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? (Points: 5) [pic]Pricing and product-mix decisions. [pic]Cost reduction decisions. [pic]Design decisions. [pic]Discretionary decisions.

2. (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity? (Points: 5) [pic]$3.00 [pic]$2.50 [pic]$2.00 [pic]$3.50

3. (TCO 2) Fixed overhead costs include: (Points: 5) [pic]the cost of sales commissions [pic]property taxes paid on plant facilities [pic]indirect materials [pic]energy costs

4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month's projected total sales. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
Brenton's budgeted total cash receipts in April are