Homework Answers
Solution:
Option b : The cost of processing the product "as is"
Explanation:
In a sell or process further decision we take a decision whether to sell the product "as is" or to process it further. This decision depends on whether incremental revenue from further processing is greater than the incremental cost of further processing.This point of time when the cost of two products can be separately identified is called split off point.The decision to process it further also depends on the opportunity cost of further costs of processing.The resources employed in further processing could have been invested in other profitable products.However the decision does not depend on the cost incurred on the product till now that is till the split off point stage, as it has no relevance in making a decision of further processing.
Add Answer to:
Which of the following is not relevant to a sell-or-process further decision? Multiple Choice The opportunity...
A sell-or-process further decision involves deciding whether to Accept a special order for a price lower...
A sell-or-process further decision involves deciding whether to Accept a special order for a price lower than normal Continue a product line or eliminate it Sella product as is or continue to refine it Produce a product in-house or outsource it Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks. The company is considering processing these backpacks further to produce hiking backpacks. A summary of the expected costs and revenues for both of these options follows: Hiking Backpacks Ordinary Activity...
In a sell-or-process-further decision, the decision will be to sell at the split-off point if the...
In a sell-or-process-further decision, the decision will be to sell at the split-off point if the incremental revenue from processing further is: a) less than the costs of the common process b) less than the incremental cost of processing c) more than the incremental cost of processing d) less than the revenue from selling at the split-off point
Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep...
Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep a product line or drop it? (Select all that apply) Check All That Apply 0 Opportunity costs of using the production facility currently being used for the product line 0 Revenues generated by the product line 0 Variable costs incurred in manufacturing the product 0 Direct fixed costs associated with the product line 0 Common fixed costs allocated to the product line Check All...
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number...
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $78,000, and the result is 5,800 gallons of anderine and 8,000 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $12.00 per gallon and the dofinol for $6.75 per gallon. Alternatively, the anderine...
Required information Knowledge Check 01 Which of the following factors should be considered when deciding whether...
Required information Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep a product line or drop it? (Select all that apply) Check All That Apply Opportunity costs of using the production facity currently being used for the productie Revenues generated by the productie ✓ W e costs incurred in manufacturing the product Dreat Dec costs associate Pro common come to our Research Socc er Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks....
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The standard quantity of materials required in the process is 5,400 pounds, which cost $5.00 per pound. Columblan coffee can be sold without further processing for $6.40 per pound. Columblan coffee can also be processed further to yleld Decaf Columblan, which can be sold for $11.00 per pound. The processing Into Decaf Columblan requires additional processing costs of $13,850 per batch. The additional processing will...
3.6 Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds....
3.6
Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantit...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number...
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $79,000, and the result is 6,000 gallons of anderine and 7,600 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $11.00 per gallon and the dofinol for $5.95 per gallon. Alternatively, the anderine...
A sell-or-process further decision involves deciding whether to Accept a special order for a price lower than normal Continue a product line or eliminate it Sella product as is or continue to refine it Produce a product in-house or outsource it Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks. The company is considering processing these backpacks further to produce hiking backpacks. A summary of the expected costs and revenues for both of these options follows: Hiking Backpacks Ordinary Activity...
Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep a product line or drop it? (Select all that apply) Check All That Apply 0 Opportunity costs of using the production facility currently being used for the product line 0 Revenues generated by the product line 0 Variable costs incurred in manufacturing the product 0 Direct fixed costs associated with the product line 0 Common fixed costs allocated to the product line Check All...
Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound is decomposed into two chemicals: anderine and dofinol. The cost of processing one batch of compound is $78,000, and the result is 5,800 gallons of anderine and 8,000 gallons of dofinol. Betram Chemicals can sell the anderine at split-off for $12.00 per gallon and the dofinol for $6.75 per gallon. Alternatively, the anderine...
Required information Knowledge Check 01 Which of the following factors should be considered when deciding whether to keep a product line or drop it? (Select all that apply) Check All That Apply Opportunity costs of using the production facity currently being used for the productie Revenues generated by the productie ✓ W e costs incurred in manufacturing the product Dreat Dec costs associate Pro common come to our Research Socc er Knowledge Check 02 Potomac Backpacks, Inc. manufactures regular backpacks....
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,400 pounds. The standard quantity of materials required in the process is 5,400 pounds, which cost $5.00 per pound. Columblan coffee can be sold without further processing for $6.40 per pound. Columblan coffee can also be processed further to yleld Decaf Columblan, which can be sold for $11.00 per pound. The processing Into Decaf Columblan requires additional processing costs of $13,850 per batch. The additional processing will...
3.6
Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing...
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $7.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $11,150 per batch. The additional processing will...
Most questions answered within 3 hours.
-
You are attempting to calculate a firm’s free cash flow to
equity. You know the following...
asked 19 minutes ago -
the following reaction occurs in a balloon containing
N2O2 gas
N2O4(g)=2NO2(g)
will the volume of the...
asked 54 minutes ago -
answer the questions throughout this program
public class Day implements Comparable {
Private Boolean atWork;...
asked 1 hour ago -
This is C++ code for parking fee management program
#include <iostream>
#include <iomanip>
using namespace std;...
asked 1 hour ago -
The free energy change for the following reaction at 25 °C, when
[Sn2+] = 1.17 M...
asked 2 hours ago -
An MNE is this kind of industry when competition in one country
is essentially independent of...
asked 4 hours ago -
. For this set of questions, determine what
proportion of a normal distribution is located betweeneach...
asked 5 hours ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 5 hours ago -
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 5 hours ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 6 hours ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 7 hours ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 7 hours ago