The following assumptions are used in the decision to reject/not reject a special order? a. The...
The following assumptions are used in the decision to reject/not reject a special order?
| a. |
The qualitative issues related to special order. |
|
| b. |
The quantitative issues related to special order. |
|
| c. |
Both qualitative and quantitative issues related to special order. |
Homework Answers
Correct Option c.
Both qualitative and quantitative issues related to special order.
Quantitative factors include, relevant cost at tye desired quanity required in special order. However qualitative factor includes situation and reaction of present customer base if they came to know about special price, available capacity etc.
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The following assumptions are used in the decision to reject/not
reject a special order?
a.
The...
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The following is an example why a company should not reject a special order? a. The special order is from a local country and will affect normal cost structure. b. The special order will cover all fixed costs. c. The special order is from outside normal sales area and will not affect normal sales.
a. Present an analysis supporting a decision to accept or reject the special order. (Round computations to the nearest cent.)
Total cost data follow for Glendale Manufacturing Company, which has a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseeable future, regular sales volume should continue to equal normal capacity.Direct material$102,400Direct labor64,000Variable manufacturing overhead48,400Fixed manufacturing overhead (Note 1)38,400Selling expense (Note 2)35,200Administrative expense (fixed)15,000$303,400Notes:1. Beyond normal capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached.2. Selling expenses consist of a...
Excess or unused capacity are key element in a decision to accept or reject a special...
Excess or unused capacity are key element in a decision to accept or reject a special offer price on a product or activity what is your understanding of this concept.
In deciding whether to accept a special pricing order, management should only consider the quantitative data...
In deciding whether to accept a special pricing order, management should only consider the quantitative data and disregard qualitative factors. O O True False
Which of the following is not relevant in a special order decision? Group of answer choices...
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Fuller Company makes frames. A customer wants to place a special order for 600 frames in...
Fuller Company makes frames. A customer wants to place a special order for 600 frames in green with the company logo painted on the frame, to be priced at $40 each. Normally, Fuller would charge $90 per frame for this type of order. Fuller figures that wood and glass will cost $16 per frame, variable overhead (machining, electricity) is $4 per frame, direct labor is $12 per frame, and one setup will be required at $1,000 per setup. The set-up...
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...
Which of the following is correct with regard to short-term decision making? A. If a company...
Which of the following is correct with regard to short-term decision making? A. If a company has insufficient excess capacity to fully fill a special order, the company will need to give up regular sales if they accept the special order. B. The effect on current and future customer relationships should not be considered when deciding whether to accept or reject a special order. C. When a manufacturer outsources production of a part used in its production process, the manufacturer...
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.
please use the information and answer the 2 requirements. E8-22A Special order decision and considerations (Learning...
please use the information and answer the 2
requirements.
E8-22A Special order decision and considerations (Learning Objective 3) Jasper McKnight Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: Direct materials ..... $40 Direct labor ..................................................... Variable manufacturing overhead.......... Variable marketing expenses ..................... Fixed manufacturing overhead .................... Total costs........................ *$2,100,000 total fixed manufacturing overhead/84,000 pairs of sunglasses 12 25 $88 Jasper Mcknight has enough idle capacity to accept a one-time-only special order...
In deciding whether to accept a special pricing order, management should only consider the quantitative data and disregard qualitative factors. O O True False
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 use the information and answer the 2
requirements.
E8-22A Special order decision and considerations (Learning Objective 3) Jasper McKnight Sunglasses sell for about $150 per pair. Suppose the company incurs the following average costs per pair: Direct materials ..... $40 Direct labor ..................................................... Variable manufacturing overhead.......... Variable marketing expenses ..................... Fixed manufacturing overhead .................... Total costs........................ *$2,100,000 total fixed manufacturing overhead/84,000 pairs of sunglasses 12 25 $88 Jasper Mcknight has enough idle capacity to accept a one-time-only special order...
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