Homework Answers
Solution 19:
An important Qualitative factor to consider regarding a special order is the "effect the sale of special order units will have on the the sale of regularly priced units".
Hence third option is correct.
Solution 20:
Future costs that differ across alternatives are "Relevant Costs".
because relevant cost are to be incurred in future and they differs as per the different alternatives.
Hence third option is corerct.
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O make-or-buy QUESTION 19 An important qualitative factor to consider regarding a special order is the...
Which of the following describes an important qualitative factor to consider regarding a special order? Multiple...
Which of the following describes an important qualitative factor to consider regarding a special order? Multiple Choice The unavoidable fixed costs associated with the special order. The avoidable fixed costs associated with the special order. The incremental revenue that will be generated by the special order. The effect of the sale of special-order units will have on the sale of regularly priced units. The variable costs associated with the special order.
QUESTION 7 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O...
QUESTION 7 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. O variable costs. O product costs. Click Save and Submit to save and submit. Click Save All Answers t
O Sell at split-ott, the reduction in the cost of the trees is meevall O Process...
O Sell at split-ott, the reduction in the cost of the trees is meevall O Process further, the reduction in the cost of the trees will lower furt O Process further because the reduction in the cost of the trees is irre QUESTION 8 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. O variable costs. O product costs. QUESTION
QUESTION 33 Which one of the following does not affect a make-or-buy decision? Variable manufacturing costs Opport...
QUESTION 33 Which one of the following does not affect a make-or-buy decision? Variable manufacturing costs Opportunity costs Incremental revenue Direct labor QUESTION 34 Which of the following terms mean the same thing? Avoidable costs and irrelevant costs Unavoidable costs and incremental costs Sunk costs and relevant costs Joint costs and sunk costs
a) Exercise 1: What is the Contribution to Profit for the Special Order Decision? And, should...
a) Exercise 1: What is the Contribution to Profit for
the Special Order Decision? And, should Deco accept the offer. Yes
or No? See circles on the printed exercise. A complete
answer will include both a dollar amount and Yes or
No.
EXERCISE 1: Deco Art Company. produces decorative picture frames. A recent analysis of fixed and variable costs per unit is as follows Deco Art currently sells each frame for a price of $4.50 each. Wheeler Company has offered...
LU C U JOJ Iwuise_10=_41530/7_1&content id Question Completion Status: O define the problem O identify alternatives...
LU C U JOJ Iwuise_10=_41530/7_1&content id Question Completion Status: O define the problem O identify alternatives O consider qualitative factors O total relevant costs and benefits for each alternative O determine costs and benefits for both feasible and unfeasible alternatives QUESTION 18 A decision involving a choice between internal and external production is what kind of decision? O relevant O keep-or-drop O sell-or-process-further o "special-order O make-or-buy QUESTION 19
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors...
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors important in decision making? Sunny Inc. produces 40 000 MP3 Players each month. The market price per MP3 Player is $40. The following data is relevant to MP3 Players' production and sales in November 2018 c. Direct material costs S389 870 Direct labor costs S265 900 Variable manufacturing overhead costs S224 230 Variable...
Please answer all the question!!! 5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product...
Please answer all the question!!!
5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product line's contribution margin e unavoidable fixed costs equal the product line's contribution margin d when there are no fixed costs incurred by the product line d. When the product line contribution margi n is negative 6. All of the following are relevant to the sell or...
Question 1: Special order Sales volume in units 80 Revenue $8,000 Variable costs $1,600 Contribution margin...
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin $5,400 Fixed costs $1,600 Profit $18 Special order: A client wants to buy 10 units at a discounted price of $30 per unit. This is a one-time deal (l.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
QUESTION 7 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. O variable costs. O product costs. Click Save and Submit to save and submit. Click Save All Answers t
O Sell at split-ott, the reduction in the cost of the trees is meevall O Process further, the reduction in the cost of the trees will lower furt O Process further because the reduction in the cost of the trees is irre QUESTION 8 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. O variable costs. O product costs. QUESTION
QUESTION 33 Which one of the following does not affect a make-or-buy decision? Variable manufacturing costs Opportunity costs Incremental revenue Direct labor QUESTION 34 Which of the following terms mean the same thing? Avoidable costs and irrelevant costs Unavoidable costs and incremental costs Sunk costs and relevant costs Joint costs and sunk costs
a) Exercise 1: What is the Contribution to Profit for
the Special Order Decision? And, should Deco accept the offer. Yes
or No? See circles on the printed exercise. A complete
answer will include both a dollar amount and Yes or
No.
EXERCISE 1: Deco Art Company. produces decorative picture frames. A recent analysis of fixed and variable costs per unit is as follows Deco Art currently sells each frame for a price of $4.50 each. Wheeler Company has offered...
LU C U JOJ Iwuise_10=_41530/7_1&content id Question Completion Status: O define the problem O identify alternatives O consider qualitative factors O total relevant costs and benefits for each alternative O determine costs and benefits for both feasible and unfeasible alternatives QUESTION 18 A decision involving a choice between internal and external production is what kind of decision? O relevant O keep-or-drop O sell-or-process-further o "special-order O make-or-buy QUESTION 19
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors important in decision making? Sunny Inc. produces 40 000 MP3 Players each month. The market price per MP3 Player is $40. The following data is relevant to MP3 Players' production and sales in November 2018 c. Direct material costs S389 870 Direct labor costs S265 900 Variable manufacturing overhead costs S224 230 Variable...
Please answer all the question!!!
5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product line's contribution margin e unavoidable fixed costs equal the product line's contribution margin d when there are no fixed costs incurred by the product line d. When the product line contribution margi n is negative 6. All of the following are relevant to the sell or...
Question 1: Special order
Sales volume in units
80
Revenue
$8,000
Variable
costs
$1,600
Contribution margin
$6,400
Fixed costs
$1,300
Profit
$5,100
Special order: A client wants to buy 30 units at a discounted
price of $30 per unit. This is a one-time deal (i.e., a short-term
decision). You have enough spare capacity to fulfill this special
order without cutting back on your regular sales.
a) Use the gross approach to decide whether you should take
the special order:
status...
Question 1: Special order Sales volume in units 90 Revenue $6,300 Variable costs $900 Contribution margin $5,400 Fixed costs $1,600 Profit $18 Special order: A client wants to buy 10 units at a discounted price of $30 per unit. This is a one-time deal (l.e., a short-term decision). You have enough spare capacity to fulfill this special order without cutting back on your regular sales. a) Use the gross approach to decide whether you should take the special order: status...
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