ACIS Final Review Guide

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● Price O Distribution O Work force level ○ Promotion ☐ Question 3 Take Quiz Exit 0.63 pts 3. In a market situation where supply exceeds demand, which from the following list would you generally work on first? Change finished goods inventory levels O Hire or layoff Promotion O Change overtime or under time ☐ Question 4 0.63 pts 4. Which from the following list would you generally work on first? Scheduling decisions.

A-1 complete the table under the current cost system. A-2 determine which products, if any, should be dropped. C-1 Assume that CBI drops the product(s) identified in requirement (a) above. Calculate the gross profit margin percentage for the remaining products. Assume that CBI can sell all products that it manufactures and that it will use the excess capacity from dropping a product to produce more of the most profitable product.

Subject :- Accounting

Which of the following is relevant to Limited's decision to accept a special order at a lower price?the shipping costs to the customer CEO's salary Limited's investment its warehouse the cost of its furniture and fixtures

Cost Plus Pricing   This is the most common cost-based approach to pricing a product, in which a marketer figures all costs for the product and then adds an amount to cover profit. In some cases, any costs of doing business that are not assigned to specific products. The most frequently used type of cost-plus pricing is straight markup pricing. The price is calculated by adding a predetermined percentage to the cost. Most retailers and wholesalers use markup pricing exclusively because of its simplicity - users need only estimate the unit cost and add the markup.   The first step requires that the unit cost be easy to estimate accurately and that production rates are fairly consistent. We assume that a jeans’ manufacturer has fixed costs (the cost of the factory, advertising, managers’ salaries, etc.) of $2,000,000. The variable cost for a pair of jeans (the cost of fabric, zipper, thread, and labor) is $20.00. With the current plant, the firm can produce a total of 400,000 pairs of…

14. Customer life-cycle costs: Select one: a. Are the replacement costs of using a product or service. b. Are the costs to the customer of buying and using a product until it is replaced. c. Are the same as the selling life-cycle prices. d. Focus on marketing costs. e. Are the costs the selling company incurs to satisfy the customer.

assi C rrat Which of the following is not a factor to consider when deciding whether to accept a special order? Select one: O A. Whether this order will hurt the brand name of the company B. Whether the offered price is sufficient to cover prime costs and fixed overhead allocated C. Whether other potential orders would be more profitable D. Whether additional fixed costs would need to be incurred E. All of the above

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $340,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price A B C Product A $18.00 per pound. $ 12.00 per pound $24.00 per gallon Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: B C Additional Processing Costs $ 66,090 $ 94,655 $ 39,460 Quarterly Output 12,600 pounds 19,700 pounds 3,800 gallons Selling Price $ 22.90 per pound $17.90 per pound $31.90 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each…

Cost management suggest that currently the focus is on proactive versus reactive management. 1. Describe the effect this might have on the way McDonalds determines what items to add to the menu 2. What role do you expect activity accounting(a type of management accounting) has in determing what McDonalds decides to add to the menu

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When deciding whether to sell as is or process a product further, managers should ignore which of the following? a. The costs of processing the product thus far b. The cost of processing further c. The revenue if the product is sold as is d. The revenue if the product is processed further