Question 1

In linear programming,a limiting factor that hampers management's pursuit of an objective is referred to as a ____________________.

Accepted Answer

The answer of In linear programming,a limiting factor that hampers...

Question 2

Memory Division of Missing Byte,Inc. The Memory Division of Missing Byte,Inc.produces a high-quality computer chip.Unit production costs (based on capacity production of 100,000 units per year)follow:
  Refer to Memory Division of Missing Byte,Inc.Assume,for this question only,that the Memory Division is producing and selling at capacity.What is the minimum selling price that the division would consider on a "special order" of 1,000 chips on which no variable period costs would be incurred?

Accepted Answer

A) $100 
B) $72 
C) $81 
D) $94 
A) $100 
B) $72 
C) $81 
D) $94

Question 3

Credell Company uses 12,000 units of a part in its production process.The costs to make a part are: direct material,$15; direct labor,$27; variable overhead,$15; and applied fixed overhead,$32.Anderson has received a quote of $60 from a potential supplier for this part.If Credell buys the part,75 percent of the applied fixed overhead would continue.Credell Company would be better off by

Accepted Answer

A) $30,000 to manufacture the part. 
B) $348,000 to buy the part. 
C) $60,000 to buy the part. 
D) $216,000 to manufacture the part. 
A) $30,000 to manufacture the part. 
B) $348,000 to buy the part. 
C) $60,000 to buy the part. 
D) $216,000 to manufacture the part.

Question 4

When making a decision to discontinue an operating segment,avoidable fixed costs are not considered.

Accepted Answer

A) True 
 B)False

Question 5

Information that is related to past events is relevant in the decision-making process.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following variables is associated with the "less than or equal to" constraints?

Accepted Answer

A) yes yes 
B) yes no 
C) no yes 
D) no no 
A) yes yes 
B) yes no 
C) no yes 
D) no no

Question 7

Majestic Corporation In the two following constraint equations,X and Y represent two products (in units)produced by the Majestic Corporation.
Constraint 1: 3X + 5Y  3,000
Refer to Majestic Corporation.What is the maximum number of units of Product X that can be produced?

Accepted Answer

A) 4,200 
B) 3,000 
C) 600 
D) 1,400 
A) 4,200 
B) 3,000 
C) 600 
D) 1,400

Question 8

Define and discuss outsourcing.

Accepted Answer

Outsourcing occurs when an organization

Question 9

A manager is attempting to determine whether a segment of the business should be eliminated.The focus of attention for this decision should be on

Accepted Answer

A) the net income shown on the segment's income statement. 
B) sales minus total expenses of the segment. 
C) sales minus total direct expenses of the segment. 
D) sales minus total variable expenses and avoidable fixed expenses of the segment. 
A) the net income shown on the segment's income statement. 
B) sales minus total expenses of the segment. 
C) sales minus total direct expenses of the segment. 
D) sales minus total variable expenses and avoidable fixed expenses of the segment.

Question 10

The objective function and the resource constraints have the same

Accepted Answer

A) dependent variables. 
B) coefficients. 
C) independent variables. 
D) all of the above. 
A) dependent variables. 
B) coefficients. 
C) independent variables. 
D) all of the above.

Question 11

When making a decision to discontinue an operating segment,allocated common costs are not considered.

Accepted Answer

A) True 
 B)False

Question 12

Brooklyn Bakers Brooklyn Bakers is trying to decide whether it should keep its existing bread-making machine or purchase a new one that has technological advantages (which translate into cost savings)over the existing machine.Information on each machine follows:
  Refer to Brooklyn Bakers.The $10,000 cost of the original machine represents a(n)

Accepted Answer

A) sunk cost. 
B) future relevant cost. 
C) historical relevant cost. 
D) opportunity cost. 
A) sunk cost. 
B) future relevant cost. 
C) historical relevant cost. 
D) opportunity cost.

Question 13

Atlanta Motors Atlanta Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings)over the existing machine.Information on each machine follows:
  Refer to Atlanta Motors.The $20,000 cost of the new machine represents a(n)

Accepted Answer

A) sunk cost. 
B) future relevant cost. 
C) future irrelevant cost. 
D) opportunity cost. 
A) sunk cost. 
B) future relevant cost. 
C) future irrelevant cost. 
D) opportunity cost.

Question 14

Guillory Company produces a part that has the following costs per unit:   Homeland Corporation can provide the part to Guillory for $23 per unit.Guillory Company has determined that 50 percent of its fixed overhead would continue if it purchased the part.However,if Guillory no longer produces the part,it can rent that portion of the plant facilities for $70,000 per year.Guillory Company currently produces 12,000 parts per year.Which alternative is preferable and by what margin?

Accepted Answer

A) Make-$24,000 
B) Make-$60,000 
C) Buy-$10,000 
D) Buy-$46,000 
A) Make-$24,000 
B) Make-$60,000 
C) Buy-$10,000 
D) Buy-$46,000

Question 15

Nature's Grain Corporation
Nature's Grain Corporation grows grain in rural areas of the South.The corporation's costs per bushel of grain (based on an average yield of 130 bushels per acre)follow:
   Nature's Grain Corporation defines direct material costs as seed,fertilizer,water,and other chemicals.The variable overhead costs represent maintenance and repair costs of machinery.The fixed overhead costs are completely comprised of depreciation expense on machinery and real estate taxes.
Refer to Nature's Grain Corporation.Assume that the current date is March 15.On this date,the corporation must make a decision as to whether it is financially better off to plant a certain farm with grain or leave the land idle (no income is derived from idle land).Grain prices have been severely depressed in recent years and Nature's Grain's best guess is that grain prices will be around $2.00 per bushel at the time the crop is ready for harvest.Should the company plant grain or leave the land idle? Explain.

Accepted Answer

The company should make their decision b

Question 16

In a special order decision,the sales price should be sufficient to cover a job's variable costs,incremental fixed costs,and generate a profit.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following items continuously checks for an improved solution from the one previously computed?

Accepted Answer

A) yes yes 
B) yes no 
C) no no 
D) no yes 
A) yes yes 
B) yes no 
C) no no 
D) no yes

Question 18

Kenwood Electronics Corporation Kenwood Electronics Corporation manufactures and sells FM radios.Information on the prior year's operations (sales and production Model A1)is presented below:
  Refer to Kenwood Electronics Corporation.The Model B2 radio is currently in production and it renders the Model A1 radio obsolete.If the remaining 500 units of the Model A1 radio are to be sold through regular channels,what is the minimum price the company would accept for the radios?

Accepted Answer

A) $30 
B) $27 
C) $18 
D) $4 
A) $30 
B) $27 
C) $18 
D) $4

Question 19

Why are fixed costs generally more relevant in long-run decisions than short-run decisions?

Accepted Answer

In the long run,all costs are relevant.I

Question 20

In deciding whether an organization will keep an old machine or purchase a new machine,a manager would ignore the

Accepted Answer

A) estimated disposal value of the old machine. 
B) acquisition cost of the old machine. 
C) operating costs of the new machine. 
D) estimated disposal value of the new machine. 
A) estimated disposal value of the old machine. 
B) acquisition cost of the old machine. 
C) operating costs of the new machine. 
D) estimated disposal value of the new machine.

In linear programming,a limiting factor that hampers management's pursuit of an objective is referred to as a ____________________.

When making a decision to discontinue an operating segment,avoidable fixed costs are not considered.

Information that is related to past events is relevant in the decision-making process.

Which of the following variables is associated with the "less than or equal to" constraints?

Define and discuss outsourcing.

A manager is attempting to determine whether a segment of the business should be eliminated.The focus of attention for this decision should be on

The objective function and the resource constraints have the same

When making a decision to discontinue an operating segment,allocated common costs are not considered.

In a special order decision,the sales price should be sufficient to cover a job's variable costs,incremental fixed costs,and generate a profit.

Which of the following items continuously checks for an improved solution from the one previously computed?

Why are fixed costs generally more relevant in long-run decisions than short-run decisions?

In deciding whether an organization will keep an old machine or purchase a new machine,a manager would ignore the

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 10: Relevant Information for Decision Making

In linear programming,a limiting factor that hampers management's pursuit of an objective is referred to as a ____________________.

When making a decision to discontinue an operating segment,avoidable fixed costs are not considered.

Information that is related to past events is relevant in the decision-making process.

Which of the following variables is associated with the "less than or equal to" constraints?

Define and discuss outsourcing.

A manager is attempting to determine whether a segment of the business should be eliminated.The focus of attention for this decision should be on

The objective function and the resource constraints have the same

When making a decision to discontinue an operating segment,allocated common costs are not considered.

In a special order decision,the sales price should be sufficient to cover a job's variable costs,incremental fixed costs,and generate a profit.

Which of the following items continuously checks for an improved solution from the one previously computed?

Why are fixed costs generally more relevant in long-run decisions than short-run decisions?

In deciding whether an organization will keep an old machine or purchase a new machine,a manager would ignore the

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters