Question 1

Explain why businesses apply differential analysis to product choice decisions.

Accepted Answer

Most firms can supply a number of goods

Question 2

Why aren't fixed costs relevant for most short-term decisions?

Accepted Answer

In the short run,fixed costs usually do

Question 3

Which of the following is a mathematical tool for solving such multiply-constrained decision problems?

Accepted Answer

A) curvi-linear programming. 
B) random number generators. 
C) mini-max decision-making. 
D) linear programming. 
A) curvi-linear programming. 
B) random number generators. 
C) mini-max decision-making. 
D) linear programming.

Question 4

Target costing and pricing.Mega Products makes valves for a variety of oil extraction equipment.Mega Products sells the valves to companies that manufacture and sell pumps.The company's market research department has discovered a market for valves that is similar in automated manufacturing equipment in another industry.The market research department indicates that they could sell to these new outlets for $250.Assume Mega Products desires an operating profit of 20 percent of sales.
Required:
What is the highest acceptable manufacturing cost for which Mega Products would produce the valves?

Accepted Answer

(Mega Products;target costing and pricin

Question 5

What is the objective of economic order quantity?

Accepted Answer

A) minimize the sum of carrying costs and order costs for the period. 
B) maximize the sum of carrying costs and order costs for the period. 
C) minimize carrying costs and maximize order costs for the period. 
D) maximize carrying costs and minimize order costs for the period. 
A) minimize the sum of carrying costs and order costs for the period. 
B) maximize the sum of carrying costs and order costs for the period. 
C) minimize carrying costs and maximize order costs for the period. 
D) maximize carrying costs and minimize order costs for the period.

Question 6

Which of the following is a method of managing purchasing,production,and sales,by which the firm attempts to time purchases so that items arrive just in time for sale or production?

Accepted Answer

A) total quality management. 
B) flexible manufacturing practices. 
C) just-in-time inventory. 
D) theory of constraints. 
A) total quality management. 
B) flexible manufacturing practices. 
C) just-in-time inventory. 
D) theory of constraints.

Explain why businesses apply differential analysis to product choice decisions.

Why aren't fixed costs relevant for most short-term decisions?

Which of the following is a mathematical tool for solving such multiply-constrained decision problems?

What is the objective of economic order quantity?

Which of the following is a method of managing purchasing,production,and sales,by which the firm attempts to time purchases so that items arrive just in time for sale or production?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 7: Differential Cost Analysis for Operating Decisions

Explain why businesses apply differential analysis to product choice decisions.

Why aren't fixed costs relevant for most short-term decisions?

Which of the following is a mathematical tool for solving such multiply-constrained decision problems?

What is the objective of economic order quantity?

Which of the following is a method of managing purchasing,production,and sales,by which the firm attempts to time purchases so that items arrive just in time for sale or production?

Fundamental Concepts

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters