Exam 7: Differential Cost Analysis for Operating Decisions

Using activity-based costing to analyze customer profitability requires the analyst to determine the cost to provide goods and services,which includes such activities as

Which of the following is/are examples of incorrect use(s)of accounting data by decision makers?

The theory of constraints focuses on three factors;list and discuss these three factors.

Using activity-based costing to analyze customer profitability requires the analyst to determine the cost to retain customers,which includes such activities as

What does the theory of constraintsassume?

Which of the following is/are a step in the theory of constraints?

Which of the following describes the cost of maintaining warehouse facilities?

The value chain influences long-run pricing decisions because __________ cost is the total of all the costs incurred by the activities in the value chain.

Are avoidable costs relevant in all situations where discontinuance of a product line or business segment decisions are made?

Clear Sailing Lifeboats Clear Sailing Lifeboats uses 12,000 units of a certain component in production each year.Presently,this component is purchased from an outside supplier at $9.50 per unit.For some time now there has been idle capacity in the factory that could be utilized to make this component.The costs associated with manufacturing the component internally rather than buying it from the outside supplier are Refer to Clear Sailing Lifeboats.If the company chooses to make the component instead of buying it from an outside supplier,the changes in the company's net income per year would be a

Which of the following terms describes the optimal number of units to order or produce?

Explain how to identify the costs of producing joint products and the relevant costs for decisions to sell or process further.

Which statement is true with regards to the product lifecycle?

A firm facing a make-or-buy decision must decide whether to meet its needs internally or to acquire goods or services from external sources.Buying from external sources is often called

What is throughput contribution?

What does the differential approach to pricing presume?

Sebastian Enterprises sells a product for $25 per unit and has the following costs for the product The company received a special order for 100 units of the product.The order would require rental of a special tool which costs $200.What is the minimum price per unit that Sebastian Enterprises should charge for this special order if they wish to earn a $300 profit on this order? Assume there is sufficient idle capacity to accept this order.

What is the term that describes the optimal number units to order or produce to achieve the optimal trade-off between setup (or order)costs and carrying costs?

The theory of constraintsfocuses on which of the following?

When using differential analysis to determine when to add or drop parts of operations,if the differential revenue from the sale of a product exceeds the differential costs required to provide the product for sale,then