A) result in a cash outlay. B) should be maximised for the best decision. C) only are considered when selecting among alternatives. D) are recorded in the accounting records. A) result in a cash outlay. B) should be maximised for the best decision. C) only are considered when selecting among alternatives. D) are recorded in the accounting records.

Answer the following questions using the information below: Nullabor Corporation produces a part that is used in the manufacture of one of its products.The costs associated with the production of 10 000 units of this part are as follows: \[\begin{array} { l r } \text { Direct materials } & \$ 45000 \\ \text { Direct labour } & 65000 \\ \text { Variable factory overhead } & 30000 \\ \text { Fixed factory overhead } & \underline { 70000 } \\ \quad \text { Total costs } & \underline{\$ 210000 }\\ \end{array}\] Of the fixed factory overhead costs,$30 000 is avoidable. -Assuming no other use of their facilities,the highest price that Nullabor should be willing to pay for $10 000 units of the part is:

A) $180 000 B) $140 000 C) $170 000 D) $210 000 A) $180 000 B) $140 000 C) $170 000 D) $210 000

Exam 10: Decision Making and Relevant Information

When making short-term decisions,it is important that decision makers are aware that the ________ approach tends to lend itself more to short-term decisions while ABC often has long-term implications.

(Multiple Choice)

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Question 161

Opportunity costs:

(Multiple Choice)

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Question 162

Management should focus on per unit costs when deciding whether to discontinue a product or not.

(True/False)

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Question 163

How can conflicts arise between the decision model and the performance evaluation model used to evaluate managers? Provide an example of this type of conflict. _ _

(Essay)

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Question 164

________ that do not differ will not matter and hence will have no bearing on the decision being made.

(Multiple Choice)

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Question 165

Managers tend to favour alternatives that make their own performance look better.

(True/False)

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Question 166

Producing another 10 000 units may increase the fixed cost of rent.

(True/False)

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Question 167

When using the five-step decision process,which one of the following steps should be done first?

(Multiple Choice)

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Question 168

Qualitative factors are outcomes that are measured in numerical terms,such as the costs of direct labour.

(True/False)

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Question 169

A company is considering adding a fourth product to use available capacity.A relevant factor to consider is that corporate costs can now be allocated over four products rather than only three.

(True/False)

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Question 170

Answer the following questions using the information below: Nullabor Corporation produces a part that is used in the manufacture of one of its products.The costs associated with the production of 10 000 units of this part are as follows: Direct materials \ 45000 Direct labour 65000 Variable factory overhead 30000 Fixed factory overhead Total costs Of the fixed factory overhead costs,$30 000 is avoidable. -Increasing numbers of businesses are including ethical considerations in relation to the community as well as the environment when making decisions.

(True/False)

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Question 171

With a constraining resource,which product should a manager select to emphasise?

(Multiple Choice)

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Question 172

Answer the following questions using the information below: George's 5-year-old Geo Prizm requires repairs estimated at $3000 to make it roadworthy again.His friend,Julie,suggested that he should instead buy a 5-year-old used Honda Civic for $3000 cash.Julie estimated the following costs for the two cars: Geo Prizm Honda Civic Acquisition cost \ 15000 \ 3000 Repairs \ 3000 - Antual operating costs (Fuel, maintenance, insurance) \ 2280 \ 2100 -The cost NOT relevant for this decision is the:

(Multiple Choice)

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Question 173

One type of decision that affects ________ levels is accepting or rejecting special orders when there is idle production capacity and the special orders have no long-run implications.

(Multiple Choice)

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Question 174

The difference between keeping the old machine and replacing the old machine is:

(Multiple Choice)

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Question 175

Answer the following questions using the information below: Nullabor Corporation produces a part that is used in the manufacture of one of its products.The costs associated with the production of 10 000 units of this part are as follows: Direct materials \ 45000 Direct labour 65000 Variable factory overhead 30000 Fixed factory overhead Total costs Of the fixed factory overhead costs,$30 000 is avoidable. -Assuming no other use of their facilities,the highest price that Nullabor should be willing to pay for $10 000 units of the part is:

(Multiple Choice)

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Question 176

Which of the following describes methods to maximise operating profit when faced with some bottleneck and some non-bottleneck operations?

(Multiple Choice)

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Question 177

TOC considers a short-run time period and assumes that operating costs are fixed costs.

(True/False)

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Question 178

The sum of all the costs incurred in a particular business function (for example,marketing)is called the:

(Multiple Choice)

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Question 179

Unit cost data can potentially mislead decision makers when ________ costs are included.

(Multiple Choice)

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Question 180

When making short-term decisions,it is important that decision makers are aware that the ________ approach tends to lend itself more to short-term decisions while ABC often has long-term implications.

Opportunity costs:

Management should focus on per unit costs when deciding whether to discontinue a product or not.

How can conflicts arise between the decision model and the performance evaluation model used to evaluate managers? Provide an example of this type of conflict. _ _

________ that do not differ will not matter and hence will have no bearing on the decision being made.

Managers tend to favour alternatives that make their own performance look better.

Producing another 10 000 units may increase the fixed cost of rent.

When using the five-step decision process,which one of the following steps should be done first?

Qualitative factors are outcomes that are measured in numerical terms,such as the costs of direct labour.

A company is considering adding a fourth product to use available capacity.A relevant factor to consider is that corporate costs can now be allocated over four products rather than only three.

With a constraining resource,which product should a manager select to emphasise?

One type of decision that affects ________ levels is accepting or rejecting special orders when there is idle production capacity and the special orders have no long-run implications.

The difference between keeping the old machine and replacing the old machine is:

Which of the following describes methods to maximise operating profit when faced with some bottleneck and some non-bottleneck operations?

TOC considers a short-run time period and assumes that operating costs are fixed costs.

The sum of all the costs incurred in a particular business function (for example,marketing)is called the:

Unit cost data can potentially mislead decision makers when ________ costs are included.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

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