Exam 17: Activity Resource Usage Model and Tactical Decision Making

A tariff is a tax on exports levied by the federal government.

Foreign trade zones are set up by the U.S. government to facilitate warehousing and/or manufacturing for companies.

Leasing or buying a building are examples of resources.

The following information pertains to Salamandre Company's three products: Assume that product C is discontinued and the extra space is rented for $300 per month. All other information remains the same as the original data. Annual profits will

Decisions consisting of selecting among alternatives with immediate ends in views are called __________ decisions.

Which of the following statements is TRUE when making a decision between two alternatives?

Davidian Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $120,000. Other relevant data are as follows: Processing Y further will cause profits to

Sound tactical decision making

The operations of Mouser Corporation are divided into the Bolt Division and the Nuts Division. Projections for the next year are as follows: Required:

Which of the following costs is NOT relevant to a special-order decision?

The cost of acquiring activity capacity is called __________ spending.

Sound tactical decision making is limited to achieve small objectives.

Gandolph Company manufactures a product with the following costs per unit at the expected production of 30,000 units: The company has the capacity to produce 40,000 units. The product regularly sells for $40. A wholesaler has offered to pay $32 a unit for 2,000 units. If the firm is at capacity and the special order is accepted, the effect on operating income would be

The following information pertains to Dallas Churning Company's three products: Assume that product F is discontinued and the space is used to produce

In the activity resource model, flexible resources are

Tactical decision making relies

Committed resources are acquired in advance of usage, through implicit contracting.

Which of the following would be TRUE?

Santa Lucia Industries employs 500 workers in the factory. These workers produced 85,000 units in 2014. Due to a special order, the units produced in 2015 increased to 95,000 units. However, Santa Lucia produced these units without adding workers. How is that possible?

A decision to make a component internally versus purchasing from a supplier is a