Question

QUESTION 32 Which of the following three statements are correct? I. A profit center has control over both cost and revenue. Il. An investment center has control over invested funds, but not over costs and revenue. IIA cost center has no control over sales o only Only Only I and II Only I and I QUESTION 33 The Freed Company produces three products, X, Y, Z, from a single raw material input. Product Y can be sold at the splitoff point for total revenues of $50,000, or it can be processed further at a total cost of $16,000 and then sold for $68,000. Product Y: O 1. should be sold at the split-off point, rather than processed further. O 2. would increase the company's overall net operating income by $18,000 if processed further and then sold. sold. sold. 3. would increase the company's overall net operating income by $68,000 if processed further and then 4. would increase the company's overall net operating income by $2,000 if processed further and then QUESTION 34 Opportunity costs are usually considered relevant costs O True O False

Answer 1

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