ACC 561 Week 6 Wileyplus Practice Quiz / uopacc561dotcom
For more course tutorials visit www.uopacc561.com 1. A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to 2. In incremental analysis, 3. Incremental analysis is most uesful 4. It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale which normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at $30 each. Ross would incur special shipping costs of $2 per scale if the order were accepted. Ross has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income? 5. Carter, Inc. can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor 20,000 Variable Overhead 60,000 Fixed Overhead 40,000 If Carter purchases the component externally, $30,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? 6. Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make? 7. A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost?
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www.uopacc561.com
1. A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to
2. In incremental analysis,
3. Incremental analysis is most uesful
4. It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale which normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at $30 each. Ross would incur special shipping costs of $2 per scale if the order were accepted. Ross has sufficient unused capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net income?
5. Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000
If Carter purchases the component externally, $30,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?
6. Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product is estimated at $42 per unit and the company believes the market would support a price of $170 on the assembled unit. What decision should Mink make?
7. A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost?
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<strong>ACC</strong> <strong>561</strong> <strong>Week</strong> 6 <strong>Wileyplus</strong> <strong>Practice</strong> <strong>Quiz</strong> (New)Click Here to Buy the Tutorialhttp://www.uopacc<strong>561</strong>.com/<strong>ACC</strong>-<strong>561</strong>-Assignments-and-DQs/product-19-<strong>ACC</strong>-<strong>561</strong>-<strong>Week</strong>-6-<strong>Wileyplus</strong>-<strong>Practice</strong>-<strong>Quiz</strong>-(New)For more course tutorials visitwww.uopacc<strong>561</strong>.uopacc<strong>561</strong>.comcom1. A major accounting contribution to the managerial decision-makingprocess in evaluating possible courses of action is to2. In incremental analysis,3. Incremental analysis is most uesful4. It costs Ross Co. $24 of variable and $10 of fixed costs to produceone bathroom scale which normally sells for $70. A foreignwholesaler offers to purchase 2,000 scales at $30 each. Ross wouldincur special shipping costs of $2 per scale if the order were accepted.Ross has sufficient unused capacity to produce the 2,000 scales. If thespecial order is accepted, what will be the effect on net income?5. Carter, Inc. can make 100 units of a necessary component part withthe following costs:Direct Materials $120,000Direct Labor 20,000Variable Overhead 60,000Fixed Overhead 40,000
If Carter purchases the component externally, $30,000 of the fixedcosts can be avoided. At what external price for the 100 units is thecompany indifferent between making or buying?6. Mink Manufacturing is unsure of whether to sell its productassembled or unassembled. The unit cost of the unassembled productis $60 and Mink would sell it for $130. The cost to assemble theproduct is estimated at $42 per unit and the company believes themarket would support a price of $170 on the assembled unit. Whatdecision should Mink make?7. A company decided to replace an old machine with a new machine.Which of the following is considered a relevant cost?
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