Chat with AIExam 1: Introduction
Exam 1: Introduction12 Questions
Exam 2: The Nature of Costs12 Questions
Exam 3: Opportunity Cost of Capital and Capital Budgeting13 Questions
Exam 4: Organizational Architecture11 Questions
Exam 5: Responsibility Accounting and Transfer Pricing13 Questions
Exam 6: Budgeting13 Questions
Exam 7: Cost Allocation: Theory13 Questions
Exam 8: Cost Allocation: Practices12 Questions
Exam 9: Absorption Cost Systems15 Questions
Exam 10: Criticisms of Absorption Cost Systems: Incentive to Overproduce12 Questions
Exam 11: Criticisms of Absorption Cost Systems: Inaccurate Product Costs14 Questions
Exam 12: Standard Costs: Direct Labor and Materials13 Questions
Exam 13: Overhead and Marketing Variances14 Questions
Exam 14: Management Accounting in a Changing Environment10 Questions
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Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?
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An internal accounting system should:
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Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote has offered to buy 1,500 widgets (all or nothing)for $4 each. The accountant has determined that the excess production (beyond capacity)can be accommodated in the short term by incurring an incremental (fixed)cost of $800.
Should Coyote's offer be accepted?
(Multiple Choice)
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(27) 11. Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote has offered to buy 1,500 widgets (all or nothing)for $4 each. Should the offer be accepted?
(Multiple Choice)
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(36) Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. On this information alone,should Micro accept the offer?
(Multiple Choice)
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(27) Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote Corp.has offered to buy 1,000 widgets at $4 each. What is the "cost" per unit in the context of evaluating the offer from Coyote Corp.?
(Multiple Choice)
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