In general, a decision maker should be wary of: Question 7 options: Unit variable costs Unit sale...
In general, a decision maker should be wary of:
Question 7 options:
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Unit variable costs |
|
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Unit sales prices |
|
|
Unit fixed costs |
|
|
None of the above |
Homework Answers
Answer : Unit Variable costs.
>> Decision maker should be wary of variable cost because variable cost changes with change of value.
>> Fixed cost is constant even volume changes.
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In general, a decision maker should be wary of: Question 7 options: Unit variable costs Unit sale...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT121,...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT121, are as follows: $90 100 15 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total 34 7 17 $263 What are the period costs per unit associated with Product DCT121? O A. $83 B. $56 C. $17 D. $24
A risk averse decision maker should choose the option with the highest a. expected value b....
A risk averse decision maker should choose the option with the highest a. expected value b. expected utility c. EMV d. anchor value e. None of the above
Question 2: Should you reduce the price or increase advertising? The selling price is $20/unit, variable...
Question 2: Should you reduce the price or increase advertising? The selling price is $20/unit, variable costs are $10/unit, and fixed costs are $3,000 in total. Sales volume decreased to 200 units because of a recession. You are considering two options to stimulate sales: (1) Reduce the price to $18/unit. This will increase sales volume by 20%. (2) Buy additional advertising for $300 and keep the original price. This will increase sales volume by 20%. Use the gross approach to...
Question 2: Should you reduce the price or increase advertising? The selling price is $50/unit, variable...
Question 2: Should you reduce the price or increase advertising? The selling price is $50/unit, variable costs are $40/unit, and fixed costs are $3,000 in total. Sales volume decreased to 200 units because of a recession. You are considering two options to stimulate sales: (1) Reduce the price to $48/unit. This will increase sales volume by 20%. (2) Buy additional advertising for $300 and keep the original price. This will increase sales volume by 20%. Use the gross approach to...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT 121, are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total $321 What are the period costs per unit associated with Product DCT121? O A. $70 OB. $32 O C. $20 OD. $111
Brief Exercise 20-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in...
Brief Exercise 20-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the...
Question 3 Marigold Industries incurs unit costs of $8 (95 variable and $3fied) in making an...
Question 3 Marigold Industries incurs unit costs of $8 (95 variable and $3fied) in making an assembly part for its finished product. A supplier offers to make 10,300 of the assembly part at $6 per unit. If the offer is accepted, Marigold will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving.cany, Marigold will realize by buying the part. (If amount decreases net income then enter the amount using either a negative sign...
Martinez Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly...
Martinez Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 19,400 of the assembly part at $6 per unit. If the offer is accepted, Martinez will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Martinez will realize by buying the part. (If amount decreases net income then enter the amount using either a negative...
QUESTION 7 A general rule in relevant cost analysis is variable costs are alwavs relevant fixed...
QUESTION 7 A general rule in relevant cost analysis is variable costs are alwavs relevant fixed costs are always irrelevant differential future costs and revenues are always relevant depreciation is always relevant QUESTION 8 The basic objective of the residual income approach to performance measurement and evaluation is to have a division maximize its return on investment (ROI) O cash flows cash flows in excess of a desired minimum amount. net operating income in excess of a minimum return QUESTION...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT121, are as follows: $90 100 15 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total 34 7 17 $263 What are the period costs per unit associated with Product DCT121? O A. $83 B. $56 C. $17 D. $24
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
Campus Apparels is a clothing maker. Unit costs associated with one of its products, Product DCT 121, are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total $321 What are the period costs per unit associated with Product DCT121? O A. $70 OB. $32 O C. $20 OD. $111
Brief Exercise 20-4 Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the...
Question 3 Marigold Industries incurs unit costs of $8 (95 variable and $3fied) in making an assembly part for its finished product. A supplier offers to make 10,300 of the assembly part at $6 per unit. If the offer is accepted, Marigold will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving.cany, Marigold will realize by buying the part. (If amount decreases net income then enter the amount using either a negative sign...
Martinez Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 19,400 of the assembly part at $6 per unit. If the offer is accepted, Martinez will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Martinez will realize by buying the part. (If amount decreases net income then enter the amount using either a negative...
QUESTION 7 A general rule in relevant cost analysis is variable costs are alwavs relevant fixed costs are always irrelevant differential future costs and revenues are always relevant depreciation is always relevant QUESTION 8 The basic objective of the residual income approach to performance measurement and evaluation is to have a division maximize its return on investment (ROI) O cash flows cash flows in excess of a desired minimum amount. net operating income in excess of a minimum return QUESTION...
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