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Question;ACC/561 ACC 561 Week 6 WileyPLUS;Practice Quiz;Question;1;A major accounting contribution to the;managerial decision-making process in evaluating possible courses of action is;to;provide relevant revenue and cost data;about each course of action;decide which actions that management;should consider;determine the amount of money that;should be spent on a project.;assign responsibility for the decision;Question;2;In incremental analysis;only costs are analyzed;only revenues are analyzed.;both costs and revenues may be analyzed;both costs and revenues that stay the;same between alternate courses of action will be analyzed;Question;3;Incremental analysis is most useful;in developing relevant information for;management decisions.;In evaluating the master budget;as a replacement technique for variance;analysis.;in choosing between the net present;value method and the internal rate of return method;Question;4;It costs Ross Co. $24 of variable and;$10 of fixed costs to produce one bathroom scale which normally sells for $70.;A foreign wholesaler offers to purchase 2,000 scales at $30 each. Ross would;incur special shipping costs of $2 per scale if the order were accepted. Ross;has sufficient unused capacity to produce the 2,000 scales. If the special;order is accepted, what will be the effect on net income?;$12,000 decrease;$60,000 increase;$8,000 increase;$8,000 decrease;Question;5;Carter, Inc. can make 100 units of a;necessary component part with the following costs;Direct;materials $120,000;Direct;Labor 20,000;Variable;Overhead 60,000;Fixed overhead 40,000;If Carter can purchase the component externally for;$220,000 and only $10,000 of the fixed costs can be avoided, what is the;correct make-or buy decision?;A. Make and save $30,000;B. Buy and save $10,000;C. Make and save $10,000;D. Buy and save $30,000;Question;6;Mink;Manufacturing is unsure of whether to sell its product assembled or;unassembled. The unit cost of the unassembled product is $60 and Mink would;sell it for $130. The cost to assemble the product is estimated at $42 per unit;and the company believes the market would support a price of $170 on the;assembled unit. What decision should Mink;Sell before assembly, the company will;be better off by $40 per unit;Process further, the company will be;better off by $58 per unit;Process further, the company will be;better off by $28 per unit;Sell before assembly, the company will;be better off by $2 per unit;Question;7;A company decided to replace an old;machine with a new machine. Which of the following is considered a relevant;cost;The loss on the disposal of the old;equipment;The current disposal price of the old;equipment;The book value of the old equipment;Depreciation expense on the old;equipment


Paper#37598 | Written in 18-Jul-2015

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