I want to know this description related with examples What data are relevant in deciding whether...
I want to know this description related with examples
What data are relevant in deciding whether to accept an order at a special price?
Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?
What is the decision rule in deciding whether to sell a product or process it further?
Homework Answers
What data are relevant in deciding whether to accept an order at a special price
The costs that are to be incurred or revenue lost only if the special order is taken is relavant in deciding whether to accept the order or not. All fixed cost which are incurred irrespective of the special order are to be ignored. Eg. Material, Labor, Variable Oveheads.
Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?
Opportunity cost is the revenue forgone in the next best alternative use of a particular product, Opportunity cost must be added to other relevant cost in make or buy decisions.
What is the decision rule in deciding whether to sell a product or process it further?
In deciding whether to sell or process further, we need to consider the profit in both the situations and choose the one with higher profit
Add Answer to:
I want to know this description related with examples
What data are relevant in deciding whether...
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...
1) When making Managerial decisions, explain what financial and non-financial information is involved in the decision...
1) When making Managerial decisions, explain what financial and non-financial information is involved in the decision making process? 2) Explain the following concepts utilized in Incremental Analysis--Relevant Costs, Opportunity Costs and Sunk Costs? 3) What is the purpose of incremental analysis used by a company? 4) Why do we only look at relevant costs in accepting or rejecting a special order at a set price? What assumptions are made in this decision-making process? 5) What factors do we look at...
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...
Canned Foods Unlimited is deciding whether to sell its canned corn in whole kernels or to...
Canned Foods Unlimited is deciding whether to sell its canned corn in whole kernels or to process it further into creamed corn. The cost of producing whole kernel corn is $.20 per can, and the can sells for $.40. Additional processing costs to produce the creamed corn are $.06 per can, and each can sells for $.45. Which of the following costs are relevant in this decision to sell or process further? $.20 production cost $.06 additional processing cost both...
A decision in which a manager needs to determine whether a product line
A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what kind of decision? O relevant O make-or-buy O sell-or-process-further O special-order O keep-or-drop
A. Management's Decision-Making Process. 1. The steps are: a. b. c. d. 2. Accounting's contribution to...
A. Management's Decision-Making Process. 1. The steps are: a. b. c. d. 2. Accounting's contribution to the decision-making process occurs primarily in what steps? B. Incremental Analysis. 1. 2. 3. Incremental analysis sometimes involves changes that might seem contrary to your intuition. For example, sometimes: a. b. Accept an order at a special price. 4. a. b. c. a. 5. Make or buy. In a make or buy decision, the relevant costs are: (1) (2) (3) 6. Sell or process...
Which factor is not relevant in deciding whether or not to accept a special order? Incremental...
Which factor is not relevant in deciding whether or not to accept a special order? Incremental revenue that will be earned Additional costs that will be incurred The effect that the order will have on the company's regular sales volume and selling prices The average cost of production if the special order is accepted
Opportunity costs are relevant to which of the following decisions? Whether to accept a special order...
Opportunity costs are relevant to which of the following decisions? Whether to accept a special order when capacity limited no Whether to make or buy a product yes no no no yes yes yes O no, yes O no, no yes, no yes, yes
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....
E7.18 (LO 1, 2, 3, 4, 5, 6), C The costs listed below relate to a...
E7.18 (LO 1, 2, 3, 4, 5, 6), C The costs listed below relate to a variety of different decision situations. Identify relevant costs for different decisions. Cost Decision 1. Unavoidable fixed overhead Eliminate an unprofitable segment 2. Direct labor Make or buy 3. Original cost of old equipment Equipment replacement 4. Joint production costs Sell or process further 5. Opportunity cost Accepting a special order 6. Segment manager’s salary Eliminate an unprofitable segment (manager will be terminated) 7. Cost...
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...
A. Management's Decision-Making Process. 1. The steps are: a. b. c. d. 2. Accounting's contribution to the decision-making process occurs primarily in what steps? B. Incremental Analysis. 1. 2. 3. Incremental analysis sometimes involves changes that might seem contrary to your intuition. For example, sometimes: a. b. Accept an order at a special price. 4. a. b. c. a. 5. Make or buy. In a make or buy decision, the relevant costs are: (1) (2) (3) 6. Sell or process...
Opportunity costs are relevant to which of the following decisions? Whether to accept a special order when capacity limited no Whether to make or buy a product yes no no no yes yes yes O no, yes O no, no yes, no yes, yes
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....
Most questions answered within 3 hours.
-
3. Gains from trade
Consider two neighbouring island countries called Euphoria and
Contente. They each have...
asked 53 minutes ago -
A business executive has the option to invest money in two
plans: Plan A guarantees that...
asked 3 hours ago -
Hello, can someone please help me answer this question?
How much heat is absorbed by a...
asked 3 hours ago -
. A marketing researcher conducted a survey of 25 shoppers
randomly selected at the local mall...
asked 3 hours ago -
Create an comprehensive response to the
following:
Antimicrobial agents work on a multitude of microbes (bacteria,...
asked 3 hours ago -
6.13 LAB: Step counter. Section 6.3.
A pedometer treats walking 2,000 steps as walking 1 mile....
asked 3 hours ago -
(14.2) A block of mass m = 10 kg riding on a frictionless
horizontal plane is...
asked 3 hours ago -
Use any search engine to search for articles about Starbucks
partnership with Tata Companies in India...
asked 3 hours ago -
Let’s say that for some reason Bank Excess Reserves suddenly
increase sharply. What effect would this...
asked 3 hours ago -
Given:
Curent Assets: $600,000
Total Assets: $2,600,000
Current Liabilities: $500,000
Total Liabilities: $1,700,000
What is the...
asked 3 hours ago -
1. What is a “Bankster”? What is insider trading? Why is it
illegal?
2. What is...
asked 3 hours ago -
A transverse wave on a cord is given by
D(x,t)=0.18sin(2.7x−61.0t), where Dand x are in m...
asked 3 hours ago