Quiz-5 - Copy

Which of the following best describes an "opportunity cost"?     Expected future costs that differ among alternatives     None of the items in this list of answers.     Costs that were incurred in the past and cannot be changed     The distribution of all products to be sold

Which one of the following statement is not correct? Group of answer choices -Opportunity costs are only considered when resources are limited. -Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs. -Both fixed and variable costs influence short-term decision-making. -Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action.

Opti Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Opti Systems the switch for $19.50 per unit. None of Opti's fixed costs are avoidable. (Click the icon to view the outsourcing decision.) Requirement 1. Identify the expected net costs that Opti Systems will incur to acquire 85,000 switches unde Outsource switches Facilities Idle Switch costs Make Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Expected profit contribution from the other product Total expected net cost of the optical switches Make new product LO Opti Systems needs 85,000 optical switches. By outsourcing them, Opti Systems can use its idle facilities to manufacture another product that will contribute $217,000 to operating income. Read the requirements. Data table 4 Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: $ 9.00 $ 9.00 5.00 4.00 18.00 $ Direct materials Direct labor…

"In target​ costing, prices determine costs rather than vice​ versa." Explain.       Question content area bottom Part 1     A. In target​ costing, managers start with a predatory price. Then they determine how much they can spend in variable and fixed costs to breakeven.​ Thus, prices essentially determine costs.   B. In target​ costing, managers start with a price that will result in breakeven. They the managers brainstorm to find ways to lower costs without raising the price to earn more profit.​ Thus, prices essentially determine costs.   C. In target​ costing, managers start with a market price. Then they try to design a product with costs low enough to be profitable at that price.​ Thus, prices essentially determine costs.   D. In target​ costing, managers start with a​ cost-plus price. Then they work backwards to determine how much their costs are for production and the markup is on the product.​ Thus, prices essentially determine costs.

Which one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.

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…

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.

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

Which of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.

Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing?

Carizick Co manufactures gaming products. It has created a new games console called the QpBox which is about to be launched. Demand for the QpBox is anticipated to be high. The product life cycle of the QpBox is expected to be three years with 300,000 units forecast to be sold during its first year. Sales volumes are expected to decrease by 75,000 units in each subsequent year. Production volumes will be based on expected demand levels. The following costs for the QpBox have been determined: Design and development Pre-launch advertising Advertising in Year 2 Packaging Manufacturing cost $120m $0.5m $0.4m $3 per unit $80 per unit At a recent board meeting, the finance director said that Carizick Co should look to maximise the profitability of the QpBox over its life cycle. The marketing director made the comment that Carizick Co should focus on extending the maturity phase of the life cycle only as this stage is where the QpBox is most profitable. Contract with Zone Co Carizick Co has…

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Costs associated with two alternatives, code-named Q and R, being considered by Albiston Con Supplies costs Power costs Inspection costs Assembly costs a. Supplies costs a. Power costs Alternative Q Alternative R $ 67,000 $ 67,000 $ 31,000 $ 30,100 $ 30,100 $ 35,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat b. What is the differential cost between the two alternatives? a. Inspection costs a. Assembly costs b. Differential cost $ 21,000 $ 35,000 ६

In a makeorbuy ​decision, which of the following would not be​ relevant? Question content area bottom Part 1 A. property taxes on the plant that will still be necessary even if the product is outsourced B. the quality of the product C. a lease that could be discontinued upon accepting the​ "buy proposal" D. the portion of fixed costs that could be eliminated by outsourcing

increase in warehouse costs and (or) transportation costs? Group of answer choices A) Higher Dollar Value of products B) Greater risk of damage to products C) Special handling requirements D) Only A and B are correct answers E) All A, B, and C are correct answers

When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest one to use to establish the price. OA. Manufacturing cost B. Full absorption cost OC. Prime cost OD. Variable costs

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