Ql:The costs listed below relate to a variety of different decision situations.CostUnavoidable fixed overheadDecision1Eliminate an unprofitable segment2Direct laborMake or buyEquipment replacementSell or process furtherAccepting a special order3Original cost of old equipmentJoint production costsOpportunity cost45Segment manager's salaryCost of new equipmentIncremental production costsEliminate an unprofitable segment(manager will be terminated)Equipment replacementSell or process further678Equipment replacement (the amountof materials required does notchange)Purchase or lease a building9Direct materials10Rent expenseInstructionsFor each cost listed above, indicate if it is relevant or not to the related decision. For thosecosts determined to be irrelevant, briefly explain why

Explanation: 1. The relevant costs are those costs that will have an impact on decision making and…

OI: The costs listed below relate to a variety of different decision situations. Decision Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Cost 1 Unavoidable fixed overhead 2 Direct labor 3 Original cost of old equipment Joint production costs Opportunity cost 4 5 Eliminate an unprofitable segment (manager will be terminated) Equipment replacement Sell or process further 6. Segment manager's salary Cost of new equipment Incremental production costs Equipment replacement (the amount of materials required does not change) Purchase or lease a building 9 Direct materials 10 Rent expense Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explain why 670

OI: The costs listed below relate to a variety of different decision situations. Decision Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Cost 1 Unavoidable fixed overhead 2 Direct labor 3 Original cost of old equipment Joint production costs Opportunity cost 4 5 Eliminate an unprofitable segment (manager will be terminated) Equipment replacement Sell or process further 6. Segment manager's salary Cost of new equipment Incremental production costs Equipment replacement (the amount of materials required does not change) Purchase or lease a building 9 Direct materials 10 Rent expense Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explain why 670

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Identify relevant costs for different E23.18 (LO 1, 2, 3, 4, 5, 6) The costs listed below relate to a variety of different decision situations. decisions. Cost Decision Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Eliminate an unprofitable segment (manager will be terminated) Equipment replacement Sell or process further Equipment replacement (the amount of materials required does not change) Purchase or lease a building 1. Unavoidable fixed overhead 2. Direct labor 3. Original cost of old equipment 4. Joint production costs 5. Opportunity cost 6. Segment manager's salary 7. Cost of new equipment 8. Incremental production costs 9. Direct materials 10. Rent expense Problems: Set A 23-33 Instructions For each cost listed above, indicate if it is relevant or not to the related decision. For those costs determined to be irrelevant, briefly explain why.
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The opportunity cost of making a component part in factory with excess capacity for which is no alternative use is: A. Zero B. Total production costs of the component C. Total variable cost of the component D. Fixed manufacturing costs of the component
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
View Policies Current Attempt in Progress In which of the following categories do indirect materials belong? Product Cost Manufacturing Overhead Period Cost No No Yes Yes No No Yes Yes No Yes Yes Yes eTextbook and Media Save for Later O Attempts: 0 of 3 used Submit Answer
Question 9 Which of the following is NOT normally associated with activity-based costing? A Improved decision-making and pricing B Multiple cost drivers C Reduction of non-value-adding costs D Activity cost pools E I do not wish to answer this question. F High direct labour costs relative to manufacturing overhead costs
Required information Skip to question [The following information applies to the questions displayed below.] Zenon Computer competes at the retail level on the basis of customer service. It has invested significant resources in its customer service department. Recently, the company has installed a traditional activity-based costing (ABC) system to provide better cost information for pricing, decision making, and customer profitability analysis. Most of the costs of running the customer service department are considered committed (i.e., short-term fixed) costs (principally, personnel and equipment costs). The budgeted cost for the upcoming period is $832,000. Activity analysis, recently conducted when the ABC system was implemented, revealed the following information: Activities Percentage of Employee Time Estimated (Budgeted) Cost Driver Quantity Handling customer orders 75% 8,320 customer orders Processing customer complaints 10 416 customer complaints Conducting customer credit checks…
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Font Paragraph Styles The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $ 43,500 $ 53,500 1 10,700 9,400 2 10,700 9,400 3 4 10,700+ replace 9,400 9,400+ replace These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 7% real discount rate and ignore taxes. Note: Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places. b. Which machine should Borstal buy? c. If there is steady 5% per year inflation, what will be the annual rental payment for machine B for the second year? Note: Enter your answer as a positive value rounded to 2 decimal places. a. Machine A a. Machine B b. Which machine should Borstal buy? c.…
Please do not give solution in image format thanku
Please do not give solution in image format thanku