Decision Making Questions and Answers

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Decision Making Questions and Answers

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The night before an economics test, you decide to go to the movies instead of staying home and working your assignment. You get 50 percent on your test compared with the 70 percent that you normall...
Dunford Company produces three products with the following costs and selling prices: Product X Product Y Product Z Selling price per unit $40 $30 $35 Variable costs per unit 24 16 20 Contribution m...
Accountants prefer the variable costing method over the absorption costing method for evaluating the performance of a company because: a. by using the absorption costing method, income could appea...
Under variable costing, which of the following costs would not be included in the finished goods inventory? a. Direct labor cost b. Direct materials cost c. Variable factory overhead cost d. Fi...
Camptown Togs, Inc., a children's clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk so that the number of piece-goods coupons received by ea...
Which of the following statements is correct regarding the difference between the absorption costing and variable costing methods? a. When production equals sales, absorption costing income is gre...
Which of the following costing methods will yield the lowest inventory value? a. Absorption b. Hybrid c. Process d. Variable
A single-product company prepares income statements using both absorption and variable costing. Manufacturing overhead cost applied per unit produced in Year 2 was the same as in Year 1. The Year 2...
Identify whether the following description best applies to a period or to a perpetual inventory system: Provides more timely information to managers.
Gilberto Company currently manufactures one of its crucial parts at $5.15 per unit. This cost is based on a standard production rate of 40,000 units per year. Variable costs are $3.40 per unit, fix...
Listed below are a number of statements concerning management's decision-making process. Identify whether each statement is correct or incorrect. 1. The final step in management's decision-mak
Craft Corporation produces a single product. Last year, the company had a net operating income of $90,560 using absorption costing and $80,900 using variable costing. The fixed manufacturing overhe...
Discuss the Coca-Cola Company's ethical and legal management during the 2007 and 2008 crises for evaluating its impacts on international investing.
Rubble Company must decide whether to make or buy some of its components. The costs of producing 67,300 switches for its generators are as follows. Direct materials $29,060 Variable overhead $45,12...
Lone Star has computed the following unit costs for the year just ended: $ Direct material used 10 Direct labor 18 Variable manufacturing overhead 30 Fixed manufacturing overhead 27 Variable selli...
Down Home Jeans Co. has an annual plant capacity of 63,900 units, and current production is 43,700 units. Monthly fixed costs are $39,700, and variable costs are $25 per unit. The present selling p...
Policies can assist in both subjective and ... decision making.
Laredo manufactures Nuts and Bolts from a joint process (cost = $80,000). 5,000 pounds of Nuts can be sold at split-off for $20 per pound; 10,000 pounds of Bolts can be sold at split-off for $15 pe...
If you were president of the college you are attending and were employing goal programming to assist in decision making, what might your goals be? What kinds of constraints would you include in you...
Wilma Company must decide whether to make or buy some of its components. The costs of producing 60,500 switches for its generators are as follows. Direct materials $29,600 Variable overhead $44,40...
Vienna Pastry has recently opened. A significant portion of their business is bread. The store faces a challenge in that if bread does not sell on the day it is baked, day-old bread has little valu...
What returns will accrue to the company if your recommendation is followed?
The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. The...
What is Managerial Economics? What is its relevance to Engineers/Managers?
Suckert Company manufactures lacrosse sticks. The company's capacity is 5,200 sticks per month; however, it currently sells only 2,500 sticks per month. Long Meadow Sports has offered to buy 800 la...
Use the following data: Beginning inventory of finished goods 0 Units produced (no work in process) 22,000 Units sold 18,000 Units in ending inventory of finished goods 4,000 Sales price $55 per u...
To ensure that decision-makers have enough information to make good decisions: a. Move the information to those making the decisions. b. Move decision-making to those with the information. c. All o...
Let's pretend you are a junior buyer. Suppose a make-buy decision is being made for an injection molded plastic part. In other words, do you make it yourself or do you outsource it to a supplier?...
Which of the following statements is true of absorption and variable costing methods? A. Absorption costing considers fixed manufacturing overhead to be period costs. B. Both costing methods consid...
Manufacturing cost per unit will be higher under variable costing than under absorption costing. a. True. b. False.
Which of the following are joint costs? a. Costs incurred processing joint products up to the split-off point b. Costs incurred processing joint products after the split-off point c. All of the co...
The correlation between economic and accounting measures of competitive advantage is generally low. True or false
ABC Company produces three products in a joint production process. At the split-off point, all three products are produced further and then sold. Information about these products for 2018, the most...
Compute the unit cost under variable costing.
You have just won a magazine sweepstakes and have a choice between three alternatives. You can get $100,000 now, $11,000 per year in perpetuity, or $60,000 now and $150,000 at the end of 10 years....
You are considering hiring a person to be responsible for buying office supplies, that cost your company about $100,000 a year. One candidate has run a small business out of their home for the last...
You are given the four payout option show below for a coin toss. If you are using a maximin strategy, which option do you choose? a. Heads you win $500, tails you lose $100. b. Heads you win $1,000...
X Company currently makes a part and is considering buying it from a company has offered to supply it for $18.01 per unit. This year, per-unit production costs to produce 51,000 units were: Direct...
Working in a group to make a decision is beneficial in that it can provide an opportunity for: A. a better understanding of decision rationale B. development of dominant individual C. goal displace...
Wilson Bros is known for its incredibly rapid decision-making process. It is one of their major competitive advantages to be able to go from product conception to product launch in a matter of 6 we...
Why would a more educated employee population be associated with a greater level of data-driven decision-making?
With reference to decision making, which of the following does ''satisficing'' involve? a. selecting the best option with the highest utility b. seeking solutions that are satisfactory and suffic...
Will a make-buy decision be better, worse, or have no difference with an ABCM system in place?
Why might the standard marginal costing system be preferred over the standard absorption costing system? List the strengths and weaknesses of both.
Why is past experience so important to managers today, and how applicable is it in decision-making?
Why is expanding not always a good business decision?
Why is a contribution margin income statement more useful to managerial decision-makers than the income statement intended for external users?
Which statement is true concerning the decision rule on whether to make or buy? a. the company should buy if the cost of buying is less than the cost of producing b. the company should buy if the i...
Which product would be selected in a decision that involves the utilization of a constrained resource? a. The product with the lowest total cost per unit b. The product with the lowest variable cos...
Which one of the following statements is false? a. The demand for a potential business product, as well as the identification of what product or services is to be produced, are both contained in a...
Which of the two products will be more profitable at a sales level of 20,000 units?
Which one of the following individual(s) should consider purchasing housing rather than leasing or renting? Identify factors that will impact the risk of purchasing a house. Option A: A recent coll...
Which of the following was not recommended for leaders of decision groups? a. Focus the group discussion on the best two solutions b. Encourage members to look for integrative solutions c. Descri...
Which of the following steps is considered the first step in the managerial decision-making process? a. Gather information and perform differential analysis. b. Review, analyze, and assess the re...
Which of the following statements pertain to both variable costing and absorption costing? a. The income statement discloses the amount of gross margin generated during the reporting period. b. Fix...
Which of the following statements about joint-cost allocation is FALSE? A. Joint cost allocation is useful in deciding whether to further process a product after split-off. B. Joint cost allocati...
Which of the following situations would cause variable-costing income to be lower than absorption-costing income? a. Units sold equaled 39,000 and units produced equaled 42,000. b. Units sold and u...
Which of the following is true of managers with a reflective decision-making style? a) They analyze several alternatives b) They often overlook the best possible alternatives c) They tend to have t...
Which of the following is the first step in the decision-making process? a. Identify workable alternatives. b. Define the problem. c. Consider appropriate nonfinancial factors. d. Evaluate the cos...
Which of the following is the final step in the decision-making process? a. take action b. implement the selected alternative c. select the most beneficial alternative d. gather feedback to find ou...
Which of the following is the second step in the decision making process model? a. Gather feedback b. Identify the existing problem c. Select the most beneficial of alternatives d. List possible al...
Which of the following is not true of joint costs? a) They involve a common raw material or manufacturing process. b) They are sunk costs in deciding whether to process a joint product further befo...
Which of the following is most important in making a short-term special decision? A. Focus on total costs. B. Separate variable from fixed costs. C. Calculating the fixed cost per unit. D. Use a co...
Which of the following is not a general category of operational decision? a. Validation b. Accumulation c. Risk d. Eligibility e. Opportunity
Which of the following is not a feature of 'buy in' by decision-makers when making decisions? a) All the people making the decision agree this is the best decision b) A majority of people making th...
Which of the following is not a personal decision-making style? A. Directive B. Risky C. Analytical D. Conceptual
Which of the following is a programmed decision? a. Whether to expand into a new market b. When to create a new advertising campaign c. When to bill customers d. How much to invest in a new product
Which of the following cost items is not allocable as joint costs when a single manufacturing process produces several main products and several by-products? A. Direct materials B. Variable overh...
Which of the following complicates the rational model of decision-making? a. Uncertainty about the costs and benefits of particular actions b. Standard operating procedures c. The pursuit of nat...
Which leader action is most likely to improve a group decision? A) ask judgmental questions to stimulate more creative solutions B) separate solution generation from solution evaluation C) identify...
Which of the folllowing is not a type of decision making styles discussed in the text: a.) Leadership structured decision making b.) Autocratic decision making c.) Democratic decision making
Which of the factors listed below is not a reason for decision making in organizations being a complex process? a. Modern information systems enable people to evaluate a range of possible outcome...
Which decision-making style focuses on facts to be decisive and action oriented? a. Directive b. Analytical c. Conceptual d. Behavioral e. Dominating
When you work within an organization, you're typically not taught to: A. Follow a supervised plan for managing your time. B. Act as your own supervisor. C. Act in ways that are derived from establi...
When two or more people come up with a decision based on attempts to accommodate their completely different value systems, the resulting decision can be deemed: a) A good one b) A bad one c) Irrati...
When the light turns green, traffic stops, and you automatically begin crossing the street, this reflects: a) Irrational decision making b) Non-conscious decision making c) Weak decision making d)...
When production exceeds sales, the net operating income reported under absorption costing generally will be: A) less than net operating income reported under variable costing. B) greater than net o...
When Kirsten Colbert has full knowledge of a problem, its alternative solutions, and the results of those solutions, she makes decisions under a condition of __________. a. risk aversion b. complex...
When jewelry stores ask you to put on the product, or car dealers refer to the prospective vehicle you are considering as "your car," what is this an example of? a. the endowment effect b. time inc...
When direct costing is used, the cost of goods sold reflects ________. (a) both variable and fixed manufacturing costs (b) variable manufacturing costs and variable selling and administrative expen...
When did the US economy begin to recover sharply for some periods of time?
When all of the units produced are sold, the operating income is the same under both the absorption and variable costing methods. Assume no beginning and ending inventories. Which of the following...
When comparing absorption costing with direct costing, which of the following statements is not true? a. Absorption costing enables managers to increase profits in the short run by increasing inven...
When a consumer purchases an unfamiliar, expensive product or an infrequently bought item, the ______ process is often used. a. extensive problem-solving b. cognitive dissonance c. limited problem-...
What would be the total cost of buying, if a company decides to buy a product instead of manufacturing it? Assume that all fixed costs are unavoidable. A. Purchase price B. (Purchase price) + (Fi...
What type of business skill would be necessary to define the rules for and analyze the result from data mining?
What two rules do people often use, when making decisions? Do you think you also use these rules in making decisions?
What is the role of intuition in decision making?
What is the relationship between make-or-buy decisions and cycle time reduction?
What is the optimistic decision?
What is the most critical step in the decision-making process? a. Choosing alternatives. b. Evaluating the results. c. Developing a problem statement. d. Implementing a decision.
What is the most important step in the decision-making model? A. Choosing alternatives B. Implementing a solution C. Evaluation and feedback D. Understanding the problem
What is the Minimax Regret Decision?
What is the Maximin decision?
What is the income relationship between absorption and variable costing when production volume differs from sales volume? What causes these relations to occur?
What is the golden rule of decision-making in economics?
What is the difference between optimizing and satisficing?
What is the difference between strategic and economic thinking?
What is the Conservative decision?
What is one of the disadvantages of group decision-making? a. Better decision b. Conformity of groupthink c. More alternatives d. Acceptance and commitment
What is/are the difference between variable and full costing?
What is a split-off point? How would you approach a decision to sell joint products at the split-off point, or process those products further?
What general trade-offs are involved in scheduling decisions?
What general trade-offs are involved in sequencing decisions?
What factors differentiate good decision makers from poor ones?
What factor is the cause of the difference between operating income computed using absorption costing and operating income computed using variable costing? a. Absorption costing considers all manuf...
What do you understand by byproducts?
What do you think are the most reliable, safest cars?
What are the key subjects/topics/skills an employee or manager must possess to take advantage of the mountains of data available to make decisions?
What are the five basic legal agreements needed for day-to-day management? Describe the key features of each.
"What are the facts?" is typically the first step in the legal reasoning model. a. True b. False
What are the differences between conceptual and analytical research?
What are the advantages of the contribution margin format based on variable costing compared to the traditional format based on full absorption costing?
What are new ways to approach decision making? A. Brainstorming B. Ask the "five whys" C. Engage in rigorous debate D. All of the above
Valuable Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 29,000 parts is $105,000, which includes fixed costs of $50,000 and variable c...
Using the information in the payoff table, determine the best alternative using Minimax regret. || Possible Future Demand | | | | Alternatives | Low | Moderate | High | Small Facility | $9 | $9 |...
Using the information in the payoff table, determine the best alternative using Laplace's criterion. || Possible Future Demand | | | | Alternatives | Low | Moderate | High | Small Facility | $9 |...
Using the information in the payoff table, determine the best alternative using Maximax criterion. || Possible Future Demand | | | | Alternatives | Low | Moderate | High | Small Facility | $9 | $...
Using the information in the payoff table, determine the best alternative using Maximin criterion. || Possible Future Demand | | | | Alternatives | Low | Moderate | High | Small Facility | $9 | $...
Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year, there were 1,000 units in inventory. Upon further investigation, you discover that units produced...
Using the information below (assume no opening inventory), what would be the profit under variable costing and absorption costing, respectively? Sales $120,000 Units Produced 35,000 Units Sold...
Using ethics as a major guide for making and evaluating business decisions is only popular in the Unites States. True False
Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies? a. only absorption costin...
Under variable costing, fixed manufacturing overhead costs: A. are deferred in inventory when production exceeds sales B. are always treated as period costs C. are released from inventory when p...
Under the cost minimization rule, when will a firm employ only human labor?
Two or more products produced from a common input are called: a. common costs. b. joint products. c. joint costs. d. sunk costs.
True or false? Most managerial decisions include an element of risk.
True or false: In the make-or-buy decision, high production quantities favor buy decisions, and low production quantities favor make decisions.
True or false? Managers who involve employees in decision-making find that better decisions are made and employees are more likely to support those decisions.
True or false: Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs.
True or false: A company may choose to employ either variable or absorption costing income statements in its Securities and Exchange Commission 10K reporting.
Toyota is considering opening a plant in one of two neighboring states. Option 1: Maryland has a corporate tax rate of ten percent. If operated in Maryland, the plant is expected to generate $1,000...
Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below: Units in beginning inventory 2,000 Units...
There are _____ steps in the decision-making process. A. four B. six C. eight D. ten
The use of either absorption or variable costing will make little difference in companies: A. using just-in-time inventory methods. B. with large inventories. C. with high fixed costs. D. with...
The step in the decision-making process that involves choosing the best alternative is termed implementation. a) True b) False
The Shape Shifter Aerospace Company has an NC Milling Machine that it uses on its factory floor. They can sell it in the open market for a net profit of $80,000. That selling price is not a strong...
The Rocktown Beverage Company experienced the following costs in 2007 (assume the same unit costs in all years): Direct materials $4.85/unit Direct labor $2.10/unit Manufacturing Overhead Costs Va...
The Rock Company produces basketballs. It incurred the following costs during the year. Direct materials: $14,550 Direct labor: $25,300 Fixed manufacturing overhead: $12,400 Variable manufacturing...
The primary difference between absorption costing and direct costing is the treatment of: a. direct material costs. b. variable manufacturing overhead. c. fixed manufacturing overhead. d. direc...
The person with a consistent decision-making style: a. Knows how to take advantage of opportunities b. Is wishy-washy and indecisive c. May need to slow down d. Makes quick decisions without procra...
The political decision making model is best used for: A. programmed decisions. B. a variety of decisions. C. certain decisions. D. non-programmed decisions.
The owner of a clothing store must decide how many men's shirts to order for the new season. For a particular type of shirt, she must order in quantities of 100 shirts. If she orders 100 shirts, he...
The minimax regret criterion is _____. a. a weighted averaging approach to decision making b. an opportunity loss approach to decision making c. a pessimistic approach to decision making d. an opt...
The maximum criterion is an optimistic approach to decision making. \\ A. True B. False
The maximin investment is: A) Bond fund B) Money market fund C) Stock fund D) Real estate E) None of the above
The maximin investment is: A) Money market fund B) Bond fund C) Stock fund D) Real estate E) None of the above
The manager of Hampton, Inc. is trying to decide whether to make or buy a component of the product it sells. Which of the following costs and benefits is not relevant to the decision? (a) The selli...
The main difference between variable costing and absorption costing is ______. a. the treatment of non-manufacturing costs b. the accounting for variable manufacturing costs c. the accounting for f...
The manager of Green Daisy Inc. is in the process of deciding whether to make or buy carburetors for its power lawnmowers. If Green Daisy decides to manufacture the carburetor, it could utilize one...
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distr...
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distr...
The length of time necessary to tune up a car is exponentially distributed with a mean of 0.5 hours. a. If two cars are waiting for a tune-up and the service times are independent, what is the prob...
The least-cost hiring rule states that costs are minimized when: a) each input has an equivalent MP b) a firm employs workers to the point where MRP = MRC c) MP per dollar is equal for all inputs d...
The Hanna Company produces three products "A, B, and C" from a single raw material input. Product A can be sold at the split-off point for $40,000, or it can be processed further at a total cost of...
The following information is available for Keller Corporation's new product line: Selling price per unit $15 Variable manufacturing costs per unit of production $8 Total annual fixed manufacturing...
The following costs are incurred by Garrett Manufacturing when producing 150,000 units: \\ \begin{matrix} \text{Variable costs} & $700,000\\ \text{Fixed costs } & $900,000 \end{matrix} \\ An outs...
The following information relates to 123 company for fiscal 2014, the company's first year of operation: United produced: 420,000 Unit sold: 400,000 Selling price per unit: $50 Direct materia...
The following data are available for Scream Company for the year ended December 31, 2015: Sales 38,000 units Sales price $50 per unit Actual variable manufacturing costs $1,400,000 Actual fixed man...
The following information relates to Porter manufacturing for fiscal 2011, the company's first year of operation. Selling Price Per unit $150 Direct material per unit $75 Direct labor per unit $...
The first step in decision-making model is: a. Set objectives and criteria. b. Generate alternatives. c. Plan, implement the decision, and control. d. Define the problems.
The final step in the decision-making process is to: a) reassign the ratings on the criteria to find different outcomes b) pick the criteria for the next decision c) reevaluate the weightings of th...
The final and crucial stage of the decision making/problem solving process is to: a. developing a set of rational alternatives. b. evaluating the possible alternatives. c. follow-up and evaluate t...
The firms expansion path records _____. a. profit maximizing output choices for every possible price. b. output maximizing input choices for all possible cost levels when input rental rates expand...
The Dorset Corporation produces and sells a single product. The following data refer to the year just completed: Beginning inventory 0 Units produced 34,000 Units sold 25,900 Selling price per unit...
The difference between operating incomes under variable costing and absorption costing centers on how to account for: A) fixed manufacturing costs B) variable manufacturing costs C) direct material...
The cost of making a choice in terms of the next best alternative must be foregone. a. Opportunity cost b. Financial policy c. Cost of capital d. Transaction costs
The buyer decision process consists of five stages. Which of the following is NOT one of these stages? A) need recognition B) information search C) conspicuous consumption D) purchase decision E) p...
The Capitalpoor Company is considering purchasing business machine for $100,000. An alternative is to rent it for $35,000 at the beginning of each year. The rental would include all repairs and ser...
The Burt Corporation manufactures widgets, gizmos, and turnbols from a joint process. June production is 5,000 widgets; 8,750 gizmos; and 10,000 turnbols. Respective per unit selling prices at spli...
The Casey Company produces two joint products. At the split-off, product A has a sales value of $8 per unit, while product B can be sold for $10 per unit. After further processing, which costs $5 a...
The Bedford Company produces component A-4 that is used by the company in its production of product ST. The costs of producing component A-4 consist of $16 for materials, $14 for labor, $6 of varia...
The act that made exclusive dealing illegal was the: a. Robinson-Patman Act. b. Federal Trade Commission Act. c. Clayton Act. d. Sherman Act. e. None of the above.
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured: a. exceed units sold b. equal units sold c. are less than units...
Taylor manufactures 12,000 units of a part used in its production to manufacture guitars. The annual production activities related to this part are as follows: Direct materials $24,000, Direct labo...
Tanner Company manufactures products K and B from a joint process. Product K has been allocated $4,500 of total joint costs of $30,000 for the 1,500 units produced. K can be sold at the split-off p...
Suppose you work in a retail (convenience store) setting. Develop and explain a situation where you would apply probability theory or specify a probability distribution. Mention and explain the rea...
Suppose we live in a world with only 2 goods: coffee (c) and food (f). Coffee costs $1/lb and food costs $5/lb. For survival, you must have 50 lbs of food in your possession at all times. You wake...
Suppose the U.S. economy is now in the expansion phase. Would you recommend the federal government or the Federal Reserve Bank undertake expansionary or contractionary policy now? Why or why not?
Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are given in the following table: where...
Suppose that a decision-maker having four decision alternatives and focus states of nature has developed the following payoff table:
Suppose a project has two possible outcomes. There is a 70% chance that it brings a profit of 10,000. There is a 30% chance that it brings a profit of 4,900. Suppose a decision maker's utility func...
Suppose an investment has three possible outcomes. There is a 10% chance that it brings a profit of 4,000,000. There is a 50% chance that brings a profit of 1,000,000. There is a 40% chance that it...
Strategic managers and business leaders evaluate options, make choices, and find solutions to the challenges they face every day. To do so, they must learn to ask the right questions. List several...
Strategic decisions are different in nature than all other decisions which are taken at various levels of an organization. Discuss any five dimensions of strategic decision that differentiate it f...
Soccer nets for use in professional games. They sell them for $200 each. Selected data for the company's operations last year follow: Units in beginning inventory 0 Units produced 500 Units sold...
Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory, produced 100,000 units, and only sold 70,000 units. The selling price per unit is $60. The variab...
Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials $9 Direct labor $10 Variable manufacturing overhead $5 Variable selling an...
Several fundamental values influence how an individual constructs a particular issue. What are they? Give an example from your own experience for each value you mention.
Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the city's crowded streets that it sells for 906 rupees. (Indian currency is denominated in rupees, denoted...
Sharko Corporation produces a single product and has the following cost structure: Number of units produced each year is 8,000. Variable cost per unit for direct materials is $66, direct labor is $...
Senior management generally makes _______ decisions. A. static B. non-sequential C. sequential D. hard-skilled
Seran Company has contacted Truckel Inc. with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $11 per unit. Fixed costs are $12 per unit; how...
Sadie is the owner of a restaurant. She must choose how many salads to supply in advance each day before she knows the demand. Her choice is between 40, 50, 60, and 70 salads. The demand can also v...
Sally Corporation manufactures four products. The following data were provided by the cost accountant for the current year. (Table). Which is the amount of joint costs assigned to Product M using t...
Satisficing: A. chooses the first alternative that is provided. B. chooses the last alternative provided. C. chooses no alternative. D. chooses many alternatives.
Sandi Scott obtained a patent on a small electronic device and organized Scott Products, Inc., to produce and sell the device. During the first month of operations, the device was very well recei...
Rosewood Corporation produces a single product. The following cost structure applied to its first year of operations: Variable costs: SG&A $2 per unit Production $4 per unit Fixed costs (total cost...
Review the role that government policy plays in regulating markets and protecting consumers. In your opinion, why is knowledge of these issues important for decision-making in business?
Reese's Tot Toy Boxes uses variable costing to manage its internal operations. The following data relate to the company's first year of operation, when 25,000 units were produced and 21,000 units w...
Provide a list of companies that uses the decision-making process?
Products Gamma and Delta are joint products. The joint production cost of the products is $800. Gamma has a market value of $500 at the split-off point. If Gamma is further processed at an addition...
Profit will be the same under variable costing as under full absorption costing whenever: A. Production is greater than sales. B. Production is the same as sales. C. Production is less than sales...
Prepare a reconciliation and explanation of the difference in the operating profit for each year resulting from the use of absorption costing and variable costing.
Prepare an income statement for Marwick's Pianos, Inc. for August. Use the traditional format, with costs organized by function. (Omit the '$' sign in your response.) Redo (1) above, this time usin...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 46,000 Rets per year. Costs associated with this level of production an...
Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F....
Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots. 100 lots are golf course lots and will sell for $106,000 each; 125 are street frontage lots and will s...
Pike Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20 per pound and the flakes for $15 per pound. On average, 100 pounds of lobster ar...
Phoebe Corporation produces a single product. Data from the company's records for last year follow: Units in beginning inventory 0 Units produced 50,000 Units sold 30,000 Sales $1,4000,000 Ma...
Performing the initiating processes at the start of each phase: A. Helps the team to remain focused on the overall goals and objectives of the project. B. Is a good way to keep the project team b...
Paul wants to choose one of the two investment opportunities over three possible scenarios. Investment 1 will yield a return of 510,000 in Scenario 1. 52,000 in Scenario 2, and a negative return of...
Outputs with a negative sales value are: A. added to cost of goods sold. B. added to joint production costs and allocated to joint or main products. C. added to joint production costs and allocated...
Outline a strategy for companies to spend excess cash and maximize the value of that spend. Provide a rationale for your response.
Operating income using variable costing as compared to absorption costing would be higher ____. a. when the quantity of beginning inventory equals the quantity of ending inventory b. when the quant...
Only quantitative data are used in the decision-making process. a. True. b. False.
Operating income will be ____ when there is zero beginning inventory and all inventory units produced are sold. A) lower under variable costing than absorption costing B) the same under both varia...
Oran Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $76 to buy from farmers and $18 to crush in the company's p...
Operating income determined using absorption costing can be reconciled to operating income determined using variable costing by computing the difference between which of the following? a. Fixed man...
Oregon Lumber processes timber into four products. During January, the joint
Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value info...
Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value info...
On May 31, the end of the first month of operations, Seger Equipment Company prepared the following income statement, based on the variable costing concept: Seger Equipment Company Variable Costing...
One advantage of group decision making is: A. groupthink. B. compromise. C. more information and knowledge are available. D. one person may dominate the group.
On the variable costing income statement, the figure representing the difference between manufacturing margin and contribution margin is the: a. Fixed selling and administrative expenses. b. Vari...
On August 31, the end of the first year of operations, during which 18,000 units were manufactured and 13,500 units were sold, Olympic Inc. prepared the following income statement based on the vari...
Objective decision models have proven to generally _______. a. Not be worth the time and effort b. Perform worse than judgment and intuition c. Outperform judgement and intuition d. Be too d...
Of the three components in any decision-making situation, which of the following cannot be controlled? A. Alternatives B. Payoff C. States of nature D. Seasonal indexes
Night Shades, Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $12.60 per unit, and the variable labor cost is $6.90 per unit. What is the variable cost per unit?
Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if: a. production equals sales for that period. b. product...
Name two ways in which the profit motive improves the managerial decision-making process.
Ms. Sana is responsible for the management of daily activities on the production floor in a textile firm. In order to keep the workflow smooth and steady, she makes all the decisions related to emp...
Mr. Smith Johnson joined as the CEO of his company after the retirement of his father. Unfortunately, he had no/little background in business and commerce. The CFO of the organization submitted inc...
Mr. Wayne Newton, accountant for Margie Knall, Inc. has prepared the following product-line income data.
Mill Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead associated with this division is $50,000, of which $5,000 cannot be elimi...
Modern Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Modern Electronics is considering building a new facility bu...
Mendel Manufacturing produces composite window frames for airline manufacturing companies. At the start of the year, the company had no beginning inventory. During the year, the company manufacture...
Martin International has borrowed $50 million from several financial institutions. The CEO of the company is considering three investment options with this borrowed money: expand production, invest...
Match the appropriate costing method to the description: \\ a. Absorption costing only b. Variable costing only c. Both absorption and variable costing \\ 1. Treats fixed selling cost as a perio...
Martha lives for three periods. She is currently considering three alternative education-work options. She can start working immediately, earning $90,000 in period 1, $100,000 in period 2 (as her w...
Management may use both absorption and variable costing methods for analyzing a particular product. a. True b. False
Managers should ensure that a firm's transportation strategy: a) involves cost minimization. b) involves profit maximization. c) supports its competitive strategy. d) is separate from competitive s...
Marie's Decorating produces and sells a mantel clock for $100per unit. In 2010, 100,000 clocks were produced and 80,000 were sold. Other information for the year includes: Direct materials $30.00 p...
Managers should base pricing decisions on both cost and market factors. They must also consider legal issues. Describe the influence that the law has on pricing decisions.
Manufactures A and B from a joint process (cost = $80,000). Five thousand pounds of A can be sold at split-off for $20 per pound or processed further at an additional cost of $20,000 and then sold...
Lone Star Meat Packers is a major processor of beef and other meat products. The company has a large amount of T-bone steak on hand, and it is trying to decide whether to sell the T-bone steaks as...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $6...
Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials $1...
Maga Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 198 Units in beginning inventory 0 Units produced 3...
Lynn has a utility function U(W) = W^\frac{1}{2}, where W is the amount of wealth that she has. Lynn has two assets. She has $90,000 in a bank account, and she has a house worth $270,000, so her to...
List the different conditions under which managers make decisions.
Larned Corporation recorded the following transactions for the just completed month. a. $80,000 in raw materials were purchased on account. b. $71,000 in raw materials were requisitioned for use in...
Last year, Gransky Corporation's variable costing net operating income was $52,100, and its ending inventory increased by 400 units. Fixed manufacturing overhead cost was $7 per unit. What was the...
Lennox Corporation purchased a new delivery truck for $60,000. The sales taxes are $4,800. The logo is painted on the side of the truck for $1,000. The trucks annual license is $250. Annual insuran...
Last year, Junco Corporation's variable costing net operating income was $100,000. Fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $20,000. What was th...
Lane Co. produces main products Kul and Wu. The process also yields by-product Zef. Net realizable value of by-product Zef is subtracted from the joint production cost of Kul and Wu. The following...
Joint costs must be allocated before: a. Determining whether a product is a joint product or a by-product b. Determining the value of inventory c. Deciding whether to continue the entire process d....
Jupiter Corporation incurred (and budgeted) fixed manufacturing costs of $16,000 during May of 2015. Other information: - The budgeted production is 2,000 units. - Units produced total 2,250 unit...
Joint products A and B are produced in a single operation from Material M. Three hundred gallons of Material M, costing $450, produced 200 gallons of Product A, selling for $2 per gallon, and 100 g...
Joint products and byproducts are produced simultaneously by a single process or series of processes and: a. joint products are salable at the split-off point, but byproducts are not. b. the revenu...
Judy wants to avoid buying a car that is a lemon. She takes the car before she buys it to her mechanic to avoid: a. moral hazard b. adverse selection c. lemonade d. a positive externality
Joint costs are: a) costs incurred after the point where joint products split off from each other. b) sunk costs in deciding whether to process a joint product further. c) Two of the other answers...
Joint costs are: a. costs incurred after the point where joint products split off from each other. b. sunk costs in deciding whether to process a joint product further. c. Two of the other answers...
Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and varia...
Jack works hard on his project as his manager promises him a salary increase on successful completion of the project. Jack's hard work can be attributed to: a. goal displacement b. intrinsic motiva...
It is proposed at a stockholders' meeting that the firm slow its rate of payments on accounts payable in order to make more funds available for operations. It is contended that this procedure will...
Island Princess Pineapples purchases pineapples from area farmers and processes them into rings, juice, and skins. The cost of the pineapples is a joint cost, as is the initial processing in which...
Is there ever a time where it would not be a good strategic decision to attempt to exceed consumer expectations? Why?
Is there a natural bias to neglect the long run and concentrate too much on the short run in decision-making? Why?
Is the economic model of decision-making intended as a literal description of how individuals, firms, and governments actually make decisions? Explain.
___________ is not one of the ineffective responses to a decision situation. a. Relaxed avoidance b. Relaxed change c. Evaluating the importance of the situation d. Defensive avoidance e. Panic
__________ is consistent with the rational model where a decision is approached in a step-by-step and analytical fashion. a. Scientific thinking b. Strategic thinking c. Systematic thinking d. Irra...
_______ is a method of inventory costing in which all variable manufacturing costs (direct and indirect) are included as inventoriable costs and all fixed manufacturing costs are excluded. A) Mixed...
Information that is the same for all alternatives is considered relevant to the decision process. a. True. b. False.
In WinSum Textile Company, the new CEO called a meeting with the Board of Directors. In the meeting, they discussed the possible Joint Ventures with other companies. Many aspects of joint ventures...
In which stage of the business buying decision process is GE's reputation likely to have the most influence on a railroad that is considering the purchase of new locomotives?
In trying to determine a course of action, it becomes apparent that part of the team had used data supplied by the VP of Finance whereas others on the team had their data supplied from the VP of Ma...
In the managerial hierarchy of decision making, ______ is depicted at the top-most level because it occurs first. a. tactics b. implementation c. iterative planning d. strategic
In the make-or-buy decision, one of the reasons for buying is: a. to utilize internal capacity b. to lower acquisition of new products c. to obtain the desired quality d. to remove supplier collusi...
In making business decisions, management ordinarily considers only financial information. a. True. b. False.
In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What would have happened to net operating income in this first year under...
In a period a company had opening inventory of 31000 units and closing inventory of 34000 units. Profit based on marginal costing were $8,50,500 and on absorption costing $9,55,500. If the budgeted...
In 20X5, Tom and Meg had income of $82,000 using direct costing. Beginning and ending inventories were 8000 and 3,020 units, respectively. The fixed manufacturing overhead cost was $4.00 per unit....
If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16, the least costly combination of capital and labor requires adjusting the amount of labor until...
If the last worker employed ($15/hour) produces 45 additional units of output per hour and the last unit of capital employed ($200/hour) produces 1,000 units of output per hour, how can the firm mi...
If the last worker employed ($10/hour) produces 50 additional units of output per hour and the last unit of capital employed ($500/hour) produces 2,500 units of output per hour, how can the firm mi...
If the fixed manufacturing overhead cost per unit under full costing is multiplied by the change in inventory between the beginning and ending of the period, what does the resulting number represent?
If a person uses the functional perspective by themselves and not in a group setting, would you still consider it a communication theory? Explain your answer.
If a manager approaches problems in a rational and analytical way, trying to solve them in a step-by-step fashion, he or she is well described as a(n): a. systematic thinker b. intuitive thinker c....
Identify the advantages and disadvantages of group decision-making. Provide an example that supports your conclusions from current events.
How would you rank the three models derived from decision-making theory in terms of application to policing and why?
How might collective decision making play a role in the decision to buy a cell phone for a young child? Provide a possible scenario for this decision including the five decision making roles in you...
How does global demand for fish affect marine natural resource economics?
How does composition of the board of directors affect strategic decision making?
How do we make the right decisions and what are the general guidelines for a company to make the proper ethical decisions?
How do conflict mechanisms impact decision-making?
How do macroeconomic data and forecasts get factored into strategic decisions in a firm?
How can the decision rule be used to determine how to spend $5 million?
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The foll...
Honda Motor Company is considering offering a $2000 rebate on its minivan, lowering the vehicle's price from $30,000 to $28,000. The marketing group estimates that this rebate will increase sales o...
Hill Country Farms, Inc. is a small grower of peaches. Hill Country estimates that peach output would increase by 600 bushels per season with an additional 6,000 gallons of water provided strategy...
How are certainty, uncertainty, and risk related?
Harron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: | Selling price | $128 | Units beginning inventory | 0 | Units pr...
Having all of the information available to make a decision is described as: A. risk. B. ambiguity. C. certainty. D. uncertainty.
Hearables inc. manufactures audio headsets. The variable cost per headset is as follows: Direct material $2.50 Direct labor $1.75 Variable manufacturing overhead $2.25 Sales commission $0.7...
Heston Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory: $270,000 Fixed manufacturing overhead in production: $800,000 Ending fixed m...
Hanks Company produces a single product. Operating data for the company and its absorption costing income statement for the last year is presented below: Units in beginning inventory 0 Units produ...
HD Inc. produces a variety of products for the computing industry. CD burners are among its most popular products. The company's controller, Katie Jergens, spoke to the company's president at a mee...
Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first three years of business is as follows Explain why profit fluctuates from year to...
Hamilton Stage Supplies is a manufacturer of a specialized type of light used in theaters. Information on the first three years of business is as follows: A. Calculate profit and the value of endi...
Hailey, a lawyer on the staff of International Group, always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context....
Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $5,300. The company is evaluating the desirability of adding masts, sails, an...
Global Telecom Corp. must choose one of three partnering firms (X Co., Y Co., or Z Co.) with which to develop a personal communicator. The possible states of nature are that future demand may be lo...
Give a real-world example of when you could use a decision tree.
Gardner Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2013, the first year of operations, Gardner produced 5,500 tons of plastic and so...
Gardner Corp. produces plastic that is used for injection-molding applications such as gears for small motors. In 2013, the first year of operations, Gardner produced 4,000 tons of plastic and sold...
Fort Collins, Inc., has $1 million in cash available for 30 days. It can earn 1 percent on a 30-day investment in the United States. Alternatively, if it converts the dollars to Mexican pesos, it c...
For the following profit table, what is the maximum regret value for the best decision alternative based on the minimax regret approach? State of nature Decision Alternative 1 2 3 4 1 15 5 20 21 2...
For consumers, explain the three major types of decision-making approaches. Give an example of each.
Following is some information about ACME Inc. three plants: Facility A, B, and C. Facility A: Units produced per month: 60,000; workers: 8; salary per worker: $20, machine hours: 500, and cost of m...
Following is information related to Ellis Quilting Company. [TABLE] Kent Motels has offered to buy a batch of 500 blankets for $51 each. Ellis' normal selling price is $90 per unit. Based on the pr...
Flygt Corporation sells one product, its waterproof hiking boot. It began operations in the current year and had an ending inventory of 10,500 units. The company sold 20,000 units throughout the ye...
Fill in the blank to answer/complete the statement. Your own estimate of the likelihood that you will win a contest is known as a(n) ________.
Explain, what are the main issues of make-or-buy decisions in the context of managing the actual emergency in a country, after a natural disaster like a hurricane?.
Explain what is meant by the term "takeover waves" outline the reasoning to explain the apparent positive relationship between the level of takeover activity and the returns in the market.
Explain the types of decisions made in each of the three (3) decision phases or categories that must be made in a successful supply chain (show each decision phase name and then the decisions made...
Explain the risks and conflicts that decision-making entails. In an organization, how could a manager mitigate uncertainty raised from business decisions?
Explain the use of Maximax rule.
Explain the difference between absorption costing and variable costing. Give examples of each.
Explain how to decide which college one would attend.
Explain reason for change in the view of alternative production techniques.
Explain how using trust techniques might lead to a change in an organization's negotiation strategies.
Explain the concept of error and uncertainty as it relates to decision making.
Explain how the concepts of relevant costs, opportunity costs, strategy, and balanced scorecard relate to decision making.
Entrepreneurs Joe Stengard and his wife, Jackie Piel, had a decision to make. Located just outside of St. Louis, Missouri, their five-year-old company, S&P Crafts, was growing rapidly, and they wer...
Entel Corporation creates an accounting computer program. This year, Entel Corporation produced 20,000 units of its program and sold 22,000 units. Each unit sells for $250. Selected operational and...
Effective decisions are consistently related to all of the following except: a. higher individual performance. b. higher organizational productivity. c. a firm's financial performance. d. higher d...
Economics is about choices. The manner in which the choices are perceived and presented by a decision-maker is termed: a. critical framing b. rational framing c. adjustment framing d. decision fram...
Eden Company manufactures 2 products, Brights and Dulls, from a joint process. The cost of the joint process is $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products m...
Eden Company manufactures two products, Brights and Dulls, from a joint process. The cost of the joint process is $50,000 and results in 250 units of Brights and 1,000 units of Dulls. Both products...
During the first month of operations ended May 31, 2014, Dorm Fridge Company manufactured 8,600 microwaves, of which 8,200 were sold. Operating data for the month are summarized as follows: Sales $...
Each of the three mutually exclusive alternatives shown has a 5-year useful life. If the MARR is 10%, which alternative should be selected? Solve the problem by cost-benefit ration analysis. A B...
During the first month of operations ended July 31, Head Gear Inc. manufactured 26,800 hats, of which 25,500 were sold. Operating data for the month are summarized as follows: Sales $183,600 Manufa...
During the year just ended, Kerry Company's income under absorption costing was $3,000 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable c...
During the most recent year, Evans Company had operating income of $90,000 using absorption costing and $84,000 using variable costing. The fixed manufacturing overhead application rate was $6 per...
Distinguish between joint and separable costs. How do these distinctions differ between a firm with truly joint products and a firm with only a major product and by-products?
Discuss the highest-impact facet of health care economics that relates to a current or desired leadership role. What action steps and resources might you use to assure objective and ethical economi...
Discuss the role of modeling in research in managerial decisions making with an appropriate illustration. How is the model validation done?
Digital Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2010, and operated at 100% of capacity during the first month. The following data summarize the results for...
Discuss decision making, relevant costs, opportunity cost, strategy, and balanced scorecard. How does decision making relate to each of the other concepts?
Diego Company manufactures one product that is sold for $80 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operation...
Descriptive claims say something about how the world is. Normative claims refer to some standard or make an evaluation. a. True b. False
Describe the steps of the decision-making process in short-run and long run.
Define System 1 and System 2 thinking. Explain how they are relevant to decision-making.
Define the management decision problem facing trueearth healthy foods with respect to frigerated pizza
Decision by __________ is often done by providing a suggestion and then forcing quick agreement by challenging the group with such statements as "Does anyone object?...No? Well, let's go ahead then...
Dakota Corporation has been producing and selling 42,000 hats a year. The Dakota Corporation has the capacity to produce 52,000 hats with its present facilities. The following information is also a...
Decision making is (simplistically) typically described as which of the following? a) deciding what is correct b) putting preferences on paper c) choosing among alternatives d) processing informati...
Data pertaining to a company's joint manufacturing process for the current period follows: Product A Product B Quantities produced 300 lbs. 200 lbs. Processing cost after products are separated...
Data pertaining to a company's joint manufacturing process for the current period follows: Product A: Quantities produced 200 lbs. processing cost after products are separated $1,100, market value...
Craft Company produces a single product. Last year, the company had a net operating income of $93,600 using absorption costing and $83,100 using variable costing. The fixed manufacturing overhead c...
Costs, benefits, timeliness, and ____ are among the recommended criteria for evaluating alternative courses of action in the decision-making process. a. ethical soundness b. past history c. availab...
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $120 per u...
Consumers are unlikely to engage in extensive search when they are seeking? a. high-involvement products b. low-involvement products. c. financial capital. d. capital goods.
Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision mak...
Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3. S1 S2 S3 \\ A $60 $145 $120 \\ B $75 $125 $110...
Consider the following information pertaining to a year's operations of Youngstown Manufacturing: Units sold 1,400 Units produced 1,600 Direct labor $4,200 Direct materials used 3,500 Fixed manufac...
Consider the following comments about absorption- and variable-costing income statements: I. A variable-costing income statement discloses a firm's gross margin. II. Cost of goods sold on an absorp...
Comstat's contribution income statement utilizing variable costing appears below: Comstat Company Income Statement For the Year ended December 31, 2007 Sales ($28/unit) $840,000 Less variable cos...
Compute the current net income for Cawley Company.
Comparison of Variable Costing and Absorption Costing. Consider the following information pertaining to a year operations of Youngstown Manufacturing: Units sold $1,400 Units produced $1,600 Di...
Company X uses a joint processing system for its 2 products, Y and Z. As a result of using the physical volume method of joint cost allocation instead of the net realizable value method, they have...
Cloverton Glass Company makes stained glass lamps. Each lamp that it sells for $128 requires $20 of direct materials and $32 of direct labor. Fixed overhead costs are expected to be $72,000 per yea...
Climate-Control, Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a...
Cinta Cosmetics purchases flowers in bulk and processes them into perfume. From a certain mix of petals, the firm uses Process A to generate Sandra, its high-grade perfume, as well as a certain res...
CDE Music produces 60,000 CDs on which to record music. The CDs have the following costs: Direct Materials $11,000 Direct Labor 15,000 Variable Overhead 3,000 Fixed Overhead 7,000 CDE could avoid $...
CDE Music produces 60,000 CDs on which to record music. The CDs have the following costs: Direct Materials $11,200 Direct Labor 15,000 Variable Overhead 4,200 Fixed Overhead 7,000 None of CDE's fix...
Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variab...
Can probability always be a reliable source for business decision-making? Why? Provide 3 reasons.
Cantrell Company has already manufactured 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold at this stage for $500,000. Alternatively, the units can be further proce...
Calculate the cost of a unit assuming use of direct costing.
Caballero Manufacturing incurs unit costs of $7.90 ($6.10 variable and $1.80 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,500 of the assembly part at...
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.50 per unit. Bluebird currently produces and sells 75,000 units at $7.50 each. This level represents 80% of its cap...
BobJohnson decided to buy a new home. After looking at tracts of new homes, he decided that a custom-built home was preferable. He hired an architect to prepare the plans for a fee of $7000. While...
Basil wishes to start a landscaping company, selling plants and landscaping services to new residents of New England Manor, a subdivision that is developing south of Tampa, Florida. Basil can emplo...
Battonkill Company, operating at full capacity, sold 124,200 units at $63/unit in 2014. Its income statement and division of costs for 2014 are given in the following table. To increase $693,000 in...
Avant Designs and manufactures polished-nickle fashion bracelets. It offers two bracelets: Aztec and Mayan. The following data summarized budgeted operations for the current year: AVANT DESIGNS Su...
At the end of Killo Co.'s first year of operations, 1,000 units of inventory remained on hand. Variable and fixed manufacturing costs per unit were $90 and $20, respectively. If Killo uses absorpti...
At the end of the first year of operations, 4,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials $27.30 Direct labo...
At the end of the accounting period, Armstrong Corporation reports operating income of $30,000. Which of the following statements is true, if Armstrong's inventory levels decrease during the accoun...
Assume you have determined that the annual cost of operations (maintenance, etc.) under a capital lease are $75,192 per year for the next 5 years.
Assume that Fordham Co. was evaluating a project in Thailand (to be financed with U.S. dollars). All cash flows generated from the project were to be reinvested in Thailand for several years. Expla...
Assume that the income for 20X2 was $600,000 under variable costing and $800,000 under absorption costing. The end of year cost of inventory under standard variable costing was $70,000. The beginni...
As with consumption choices, it is often enough to look at small changes to evaluate whether or not you are making a good decision. Explain this statement.
Association formation, conditioning, memory, patter recognition are all examples of ______ processes. a. rational b. Bayesian c. low-level d. deliberative c. concisions
Assume a firm has an inaccurate or inadequate performance measurement system. What types of decision errors might this cause the firm to make? Be specific, using personal workplace examples if you...
Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a start-up firm. He is nervous, however, about future economic volatility. H...
Armstrong Corporation manufactures bicycle parts. The company currently has a $19,500 inventory of parts that have become obsolete due to changes in design specifications. The part would be sold fo...
Arkansas Corporation manufactures liquid chemicals A and B from joint process. it allocates joint costs on the basis of sales value at split-off. processing 5,000 gallons of product A and 1,000 gal...
__________ are the time and resources spent trying to exchange goods and services. A) Bargaining costs. B) Transaction costs. C) Contracting costs. D) Barter costs.
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