Multiple Choice
The Lawn 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:
The managerial accountant reported that $50,000 of the fixed factory overhead was avoidable.
The manager at Rapid Manufacturing Company offered to sell 15,000 units of the same product to the manager at Lawn Corporation at $40 per unit.Assuming the plant is available,should the manager make or buy the product?
A) Make the part to save $8 per unit.
B) Buy the part to save $8 per unit.
C) Make the part to save $20 per unit.
D) Buy the part to save $20 per unit.
E) Make the part to save $25 per unit.
Correct Answer:
Verified
Correct Answer:
Verified
Q55: Alps Incorporated,a supplier in Switzerland,offered to sell
Q56: In which step of the performance-evaluation model
Q57: A _ is the difference in total
Q58: In which step of the decision-making process
Q59: A formal method of making a choice
Q61: Do managers consider long or short strategies
Q62: The managerial accountant at the Vitamin and
Q63: What factors must managers consider when they
Q64: Depreciation cost is past,or sunk because it
Q65: Performance evaluation focuses on responsibility centers for