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Q. 8  Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue   Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do   (Q8,9,10 plz)

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Problem 2-32 Multiple choice (IFRS) 1. What is the accounting for the transaction price of a contract of sale with customer coupons for free product, discount or rebate? a. Entirely as product sales revenue b. Allocated to customer options equal to stand-alone selling and the balance to product sales c. Allocated between product sales revenue and based on stand-alone selling price d. Entirely as coupon revenue 2. What is the stand-alone selling price of free product coupons? a. Nothing b. Fair value less cost of disposal c. Selling price of free product d. Selling price of free product adjusted for expected redemption 3. What is the stand-alone selling price of discount coupons? a. Discount on customer purchases during the year b. Discount on customer future purchases c. Discount on customer purchases during the year adjusted by expected redemption d. Discount on customer future purchases adjusted by expected redemption 4. What is the stand-alone selling price of rebate coupons? a.…

5-1 Companies that engage in long-term sales contracts such as construction projects often use the cost-to-cost method to recognize revenue. This means that revenue is recognized in proportion to the project's completion . Answer: True / False Topic: Sales on Consignment 5-2 A seller, acting as an agent for another company by selling the company's goods on consignment, recognizes the gross amount of the sale as revenue. Answer: True / False Topic: Revenue Recognition 5-3 Bed Bath and Beyond has a return policy which states that the customer "may return a purchase for a refund, merchandise credit, or exchange to any of our stores nationwide or to our returns processing center". The company can report revenue on the full amount as soon as the merchandise is sold. Answer: True / False

QUESTION 36 A company compensates its sales manager in such a way that the sales manager honestly provides a sales target (forecast). The company’s compensation method is:      C   =     j T   +  k (A – T),  (if  A ≥ T)                j T   –  m (T – A),  (if  A < T)    where, C  =  compensation;  A = actual sales by sales manager;  T = sales target provided by sales manager   . In the above compensation method  the coefficient "j"   represents:     A. the advantage of exceeding the target.     B. the benefit of honestly setting  the target.   C. the penalty of not meeting the target.   D. the penalty of not setting the target honestly.

C-2 if your recommendation in part (c-1) is followed, what would be the company's overall profit ?

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories. Sales revenue Costs of fitting produced Gross profit Administrative costs Operating profit Amount $ 1,170,000 900,000 $ 270,000 207,000 $ 63,000 Per Unit $26.00 20.00 $ 6.00 4.60 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing capacity. Production of…

Problems 5.1-5.3 relate to Goods and Services Selection the life cycle, identify a reasonable operations strategy for each: ... 5.1 ing products, and given the position in its life cycle, identify the issues likely to confront the operations manager and his or her possible actions. Product Alpha has annual sales of 1,000 units and a contribution of $2,500; it is in the introductory stage. Prepare a product-by-value analysis for the follow- COMPANY CONTRIBUTION (%: TOTAL ANNUAL CONTRIBUTION PRODUCT CONTRIBUTION (% OF SELLING PRICE) DIVIDED BY TOTAL ANNUAL SALES) POSITION IN LIFE CYCLE Product Bravo has annual sales of 1,500 units and a contribu- PRODUCT tion of $3,0003; it is in the growth stage. Product Charlie has annual sales of 3,500 units and a contribution of $1,750; it is in the decline stage. Smart watch 30 40 Introduction Tablet 30 50 Growth Hand calculator • 5.2 Given the contribution made on each of the 50 10 Decline three products in the following table and their position in

Which of the following is the EVC of new product X? Product Product price Startup cost Maintenance and operations cost Productivity 600 650 750 850 900 Reference Product Y $400 $200 $500 New Product X EVC: $100 $400 $150

Multiple choice problem

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Exercise 11-13 (Algo) Transfer Pricing Situations [LO11-3] [The following information applies to the questions displayed below.] In each of the cases below, assume Division X has a product that can be sold either to outside customers or to Division Y of the same company for use in its production process. The managers of the divisions are evaluated based on their divisional profits. Case A B Division X: Capacity in units Number of units being sold to outside customers Selling price per unit to outside customers 95,000 95,000 96,000 79,000 $ 50 $ 30 Variable costs per unit Fixed costs per unit (based on capacity) Division Y: $ 28 $ 12 $ 6 $ 4 Number of units needed for production 17,000 17,000 Purchase price per unit now being paid to an outside supplier $ 43 $ 24 Exercise 11-13 (Algo) Part 2 Required: 2. Refer to the data in case B above. In this case, there will be no savings in variable selling costs on intracompany sales. a. What is the lowest acceptable transfer price from the…

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Question 5-price allocation Red Windows manufactures and sells custom storm windows for enclosed porches. Red also- provides installation service for the windows. The installation process does notinvolve changes in the windows, so this service can be provided by other vendors. Red enters into the following contract on 15 Jun 2020, with alocal homeowner. The customer purchases windows for a price of £7,500 and chooses Red to do the installation. Red charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,000. The customer pays Red £6,000 (which equals the fair value of the windows, which have a cost of £4,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on 15 Jul 2020, Red completes installation on 4 Aug 2020, and the customer pays the balance due. e Required Prepare the journal entries for Red on all the dates…

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