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FINANCIAL ACCOUNTING

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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Question

5
Two alternatives, code-named X and Y, are under consideration at Guyer
Corporation. Costs associated with the alternatives are listed below.
Multiple Choice
Materials costs
Processing costs.
Equipment rental
Occupancy costs.
What is the financial advantage (disadvantage) of Alternative Y over Alternative X?
$(141,550)
$127,500
$155,600
$(28,100)
Alternative X Alternative Y
$ 63,800
$ 48,300
$ 18,000
$ 25,500
< Prev
$ 44,000
$ 48,300
$ 18,000
$ 17,200
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A company is considering two alternatives with the following costs: Alternative 1 Alternative 2Material costs$87,000 $87,000 Utilities costs$45,000 $44,100 Review costs$41,000 $44,100 Direct labor costs$51,000 $51,000 Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives.
question attached
Sloane is the general manager for a business. One of Sloane's tasks is to assign extra projects to her employees. These extra projects are supposed to be assigned following a particular order. The extra projects result in additional pay, so the employees are concerned that the extra projects are assigned following the proper procedure. Errors do happen though. Sloane makes an error once every 63 tasks that she assigns. If Sloane were to assign 10 tasks, what is the probability that she would make 3 or more mistakes? (Round your answer to six decimal places.) When Sloane was supposed to assign 10 tasks to Warren, she DID make 3 mistakes. Was Warren treated fairly? yes no What conclusions could you make about the three mistakes? Make sure to explain your conclusion thoroughly. Edit Insert ▾ Formats ▾ B I U ×₁₂ x² A▾ A▾ Question Help: Message instructor
Consider a decentralized company that has 22 divisions: Gold and Silver. The information for ????Gold is the following: Fixed and variable costs are £5050 per unit. The intermediary product produced by Gold will be transferred to Silver to create the final product. Gold does not sell the intermediary product to external customers. The information for ??????Silver is the following: Fixed and variable costs of processing the intermediary product equal £8080 per unit. The final product will be sold by Silver to external customers for £150150. Considering that managers of the company have established a transfer price policy of full cost plus 12%12%, which of the following statements is true? a. Given the current transfer pricing policy, managers from Gold do not have incentives to minimize costs. b. Silver will sell the intermediary product to Gold for £5656. c. Gold will have a profit of £1414 per unit. d. None of the answers is true.
A company is considering two alternative technologies for manufacturing a product. The cost data are shown below. Fixed Cost Variable Cost The breakeven volume is More than 400 units A $10,000 $30/unit Less than or equal to 200 units B $25,000 $5/unit More than 300 but less than or equal to 400 units O None of the options More than 200 but less than or equal to 300 units
HW 6. Please complete both parts :)
Question attached
Two currently owned machines are being considered for the production of a part. The capital investment associated with the machines is about the same. The important differences between the machines are their production capacities (production rate × available production hours) and their reject rates (percentage of parts produced that cannot be sold). The material cost is P300.00 per part, and all defect-free parts produced can be sold for P600 each. (Rejected parts have negligible scrap value.) For either machine, the operator cost is P750.00 per hour and the variable overhead rate for traceable costs is P250.00 per hour. Considering the table below: MACHINE A: Production rate: 100 parts/hr Hours available for production: 7hrs/day Percent parts rejected: 10% MACHINE B: Production rate: 130 parts/hr Hours available for production: 6hrs/day Percent parts rejected: 15% What is the profit per day of Machine A? What is the profit per day of Machine B?
1. Determine the minimum transfer price that Cutting Division would accept. 2. Determine the maximum transfer price that the Assembly Division would pay. 3. If Cutting Division will accept the offer of Assembly Division, how much is the change in its operating income ? 4. If Cutting Division will make a counter offer of P45.25 per part, how much is the change in the operating income of Assembly Division assuming that its external supplier could not supply its needed quantity?
XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16 Variable Cost $10 and Sales (Unit 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22 Variable Cost: $12. and Sales (Units): 6.000. Should XYZ company make the change? Select one: O a. No. because sales will drop by 3.000 units. Ob. Yes, the company will be better off by $4,000. OC.No bacause the company will be worse off by 522.000. Odtis impossible to judge because additional information is needed. Oe No because the company will be worse off by $4. 000. Tfredrosts of 5300 000. he company s considering increasing the price of its units to S65 per unit, If the price
Do problem 4, a through h.
Please help with the ones that are wrong. Thank You

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