2) once replacing an old asset through a brand-new one, the original purchase price that the old asset represents a(n) ________ cost.A) appropriate B) differentialC) opportunityD) sunk
3) i beg your pardon of adhering to statements is true of short-lived decision making?A) resolved costs and also variable costs must be analyzed separately.B) All prices behave in the exact same way.C) Unit manufacturing prices are change costs.D) all costs associated in a decision are considered relevant.
You are watching: The contribution margin approach helps managers in short-term decision making because it ________.
4) The donation margin approach helps managers in temporary decision making because it ________.A) treats fixed manufacturing overhead together product costB) reports only blended costsC) reports costs and revenues at present valueD) isolates prices by behavior
Regarding pertinent nonfinancial information, i beg your pardon of the adhering to statements is incorrect?A) Nonfinancial, or qualitative, determinants play a role in managers" decisions and, as a result, can be relevant.B) appropriate qualitative information has the same features as relevant financial information.C) managers must always consider the potential quantitative and qualitative results of their decisions.D) Qualitative factors can it is in ignored due to the fact that these components are complicated to measure.
5) Differential analysis is a method that ________.A) evaluates both relevant and irrelevant informationB) considers all locations of the traditional income statementC) is not provided for temporary decision makingD) look at at just how operating income would different under every decision alternative
6) i beg your pardon of the following provides a key in examining short-term organization decisions?A) emphasis on expenses that do 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 pertinent costs and also use the contribution margin approach
7) Rica company is a price-taker and also uses a target-pricing approach. Refer to the complying with information:Production volume 600,000 units per yearMarket price $30 per unitDesired operating earnings 17% of full assetsTotal heritage $13,900,000 What is the desired profit because that the year?A) $102,000B) $18,000,000C) $4,100,000D) $2,363,000
PPOBLEM 8) Revolve company is a price-taker and also uses a target-pricing approach. Describe the complying with information:Production volume 602,000 devices per yearMarket price $32 every unitDesired operating revenue 15% of full assetsTotal heritage $13,700,000 What is the target complete product cost in complete for the year? Assume every 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: preferred profit (13,700,000 × 15%) 2,055,000Target cost $17,209,000
PROBLEM 9) Peacock, Inc. Sells 2,000 kayaks every year at a sales price that $460 per unit. It sells in a very competitive market and also uses target pricing. The firm has calculation its target complete product cost at $810,000 every year. Fixed expenses are $340,000 every year and cannot be reduced. What is the target variable price per unit presume units sold are equal to devices produced? A) $235B) $405C) $575D) $170
AExplanation: Target full product price $810,000Less: Fixed expenses 340,000Target variable expenses $470,000Target variable expense per unit = $470,000 / 2,000 units = $235
11) If a company wants to be a price-taker, i m sorry of the adhering to strategies have to be taken?A) enter a compete market and focus on cost cutting.B) produce a unique product.C) manipulate the value of a fashionable brand name.D) differentiate the product clearly from the competitors.
12) i beg your pardon of the following statements is true?A) service providers are price-takers once their assets are unique.B) providers are price-setters because that a product once there is extreme competition.C) carriers are price-takers for a product as soon as the pricing approach emphasizes cost-plus pricing.D) service providers are price-takers when they have small or no regulate over the price of their assets or services.
See more: Which Graph Is Used To Show Change In A Given Variable When A Second Variable Is Changed?
14) which of the adhering to is a significant consideration when evaluating a unique pricing decision?A) The sales price have to be high enough to cover any differential expenses to to fill the order.B) The company must have a an excellent stock sales ratio.C) The profit margin the the one-of-a-kind sale have to be greater than the continuous sales.D) The sunk costs of the decision need to not exceed the irregularity costs.
15) Venlite, Inc. Produces and sells cosmetic products. Currently, the firm is operating at 70% of its capacity. The sales price of its product is $30 per unit, and also it incurs a full cost of $25 to develop each unit. That is yearly fixed manufacturing overhead quantities to $20,000. The agency has received a one-time bespeak for giving 5,000 devices at $26 every unit. This order have the right to be executed within the excess manufacturing capacity and will not involve any added costs. To make this decision, the monitoring of Venlite need to use ________.A) absorption costing together the decision is irreversible in natureB) change costing as the decision is short-term in natureC) absorb costing as the decision is momentary in natureD) change costing as the decision is irreversible in nature
WORK trouble Home Bakery Living can manufacture 6 toaster ovens per device hour and four bread machines per device hour. Home Bakery"s production capacity is 2,000 an equipment hours per month. What is the contribution margin per maker hour for toaster ovens? (Round device hour per unit to 2 decimal places and also your final answer come the nearest whole dollar.) A) $120B) $20C) $14D) $320
AExplanation: Sales price $80Variable costs 60Contribution margin $20Toaster ovens per hour 6Contribution margin per device hour $120
22) Gnome agency is deciding whether to continue to manufacture a component or come buy the ingredient from a supplier. I m sorry of the following is appropriate to this decision?A) the potential uses of the framework that are currently used come manufacture the componentB) the insurance allowance on the manufacturing facility that will proceed regardless the the decisionC) fixed costs that execute not differ in between the alternativesD) the expense of the tools that is right now being supplied to produce the component