Ch 17 Cost Accounting

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Ch 17 cost accounting Which of the following is not a procedure included in the tactical decision model? a. Identify the alternatives. b. Identify the predicted costs and benefits associated with each feasible alternatives. c. Compute the breakeven point. d. Compare relevant costs and benefits for each alternative. status: incorrect (0.0) correct: c your answer: b feedback: Incorrect. Which of the following costs is NOT relevant to a make-or-buy decision? a. $10,000 of direct labor used to manufacture the parts. b. $30,000 of depreciation on the equipment used to manufacture the parts. c. The supervisor's salary of $25,000, which would be avoided if the part is purchased from an outside supplier. d. $15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier. status: correct (1.0) correct: b your answer: b feedback: Correct. ________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00. Assuming everything else remains the same as the original data, annual profits will: a. decrease by $400. b. increase by $700. c. decrease by $1,800. d. increase by $1,400. status: incorrect (0.0) correct: a your answer: b feedback: Incorrect. [600 × $3] - [700 × ($8 - $6)] = $400 decrease ________________________________________ 3 The following information pertains to the Norfolk Company's three products: Assume that Product C is discontinued and the extra space is devoted to the production of Product A. Product A production is increased to 500 units per year, but the selling price on all units of A is reduced to $7.00. Assuming everything

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