2) when replacing an old asset with a brand-new one, the initial purchase price the the old asset to represent a(n) ________ cost.A) appropriate B) differentialC) opportunityD) sunk
3) i beg your pardon of following statements is true of short-lived decision making?A) solved costs and variable costs must it is in analyzed separately.B) All costs behave in the same way.C) Unit manufacturing costs are variable costs.D) all costs associated in a decision are thought about relevant.
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4) The contribution margin technique helps supervisors in momentary decision making because it ________.A) treats fixed production overhead together product costB) reports only blended costsC) reports costs and also revenues at existing valueD) isolates prices by behavior
Regarding pertinent nonfinancial information, which of the following statements is incorrect?A) Nonfinancial, or qualitative, determinants play a role in managers" decisions and, together a result, can be relevant.B) pertinent qualitative information has actually the same attributes as pertinent financial information.C) supervisors must always consider the potential quantitative and also qualitative effects of your decisions.D) Qualitative factors can it is in ignored because these components are complicated to measure.
5) Differential analysis is a an approach that ________.A) evaluates both relevant and irrelevant informationB) considers all areas of the traditional income statementC) is not offered for short-term decision makingD) watch at just how operating revenue would differ under each decision alternative
6) which of the following provides a an essential in examining short-term service decisions?A) focus on prices that execute not adjust under two alternatives and on historic costsB) emphasis on qualitative data only and ignore future cash flowsC) emphasis on sunk costs and quantitative dataD) emphasis on relevant costs and also use the contribution margin approach
7) Rica agency is a price-taker and uses a target-pricing approach. Describe the complying with information:Production volume 600,000 systems per yearMarket price $30 every unitDesired operating earnings 17% of complete assetsTotal legacy $13,900,000 What is the preferred profit because that the year?A) $102,000B) $18,000,000C) $4,100,000D) $2,363,000
PPOBLEM 8) Revolve agency is a price-taker and uses a target-pricing approach. Refer to the following information:Production volume 602,000 units per yearMarket price $32 every unitDesired operating earnings 15% of full assetsTotal legacy $13,700,000 What is the target complete product cost in complete for the year? Assume all units created are sold.A) $90,300B) $17,209,000C) $13,700,000D) $2,055,000
BExplanation: Revenue at industry price (602,000 × 32) $19,264,000Less: desired profit (13,700,000 × 15%) 2,055,000Target expense $17,209,000
PROBLEM 9) Peacock, Inc. Sells 2,000 kayaks every year in ~ a sales price of $460 every unit. The sells in a extremely competitive market and uses target pricing. The firm has calculated its target full product expense at $810,000 per year. Fixed prices are $340,000 every year and cannot be reduced. What is the target variable price per unit suspect units sold are equal to devices produced? A) $235B) $405C) $575D) $170
AExplanation: Target complete product cost $810,000Less: Fixed prices 340,000Target variable expenses $470,000Target variable expense per unit = $470,000 / 2,000 units = $235
11) If a firm wants to be a price-taker, i beg your pardon of the adhering to strategies need to be taken?A) get in a competitive market and focus on cost cutting.B) produce a distinct product.C) manipulate the value of a stylish brand name.D) identify the product clearly from the competitors.
12) i m sorry of the complying with statements is true?A) service providers are price-takers as soon as their assets are unique.B) service providers are price-setters for a product when there is intense competition.C) companies are price-takers because that a product once the pricing approach emphasizes cost-plus pricing.D) suppliers are price-takers once they have small or no manage over the prices of their products or services.
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14) which of the complying with is a major consideration when examining a unique pricing decision?A) The sales price need to be high sufficient to cover any type of differential expenses to to fill the order.B) The company must have a good stock sales ratio.C) The benefit margin of the distinct sale have to be greater than the continuous sales.D) The sunk costs of the decision need to not exceed the irrelevant costs.
15) Venlite, Inc. Produces and sells cosmetics products. Currently, the firm is operating at 70% the its capacity. The sales price of its product is $30 every unit, and it occurs a full expense of $25 to create each unit. That is yearly fixed manufacturing overhead quantities to $20,000. The agency has received a one-time order for giving 5,000 systems at $26 every unit. This order deserve to be executed within the excess manufacturing capacity and will no involve any added costs. To make this decision, the monitoring of Venlite have to use ________.A) absorption costing together the decision is long-term in natureB) variable costing together the decision is short-lived in natureC) absorption costing together the decision is temporary in natureD) variable costing as the decision is permanent in nature
WORK problem Home Bakery Living have the right to manufacture six toaster ovens per device hour and four bread machines per maker hour. House Bakery"s manufacturing capacity is 2,000 device hours every month. What is the donation margin per maker hour for toaster ovens? (Round device hour per unit to two decimal places and also your final answer to the nearest whole dollar.) A) $120B) $20C) $14D) $320
AExplanation: Sales price $80Variable expenses 60Contribution margin $20Toaster ovens every hour 6Contribution margin per machine hour $120
22) Gnome company is deciding whether to proceed to to produce a ingredient or to buy the ingredient from a supplier. Which of the complying with is pertinent to this decision?A) the potential supplies of the infrastructure that are right now used to manufacture the componentB) the insurance money on the manufacturing facility the will proceed regardless the the decisionC) fixed prices that carry out not differ in between the alternativesD) the expense of the devices that is currently being supplied to manufacture the component