Winner's Circle has just received a special one-time order for 875 medals at $305 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor. Required: 1. Which of the following costs will be relevant to Cathy Donato's analysis of the special order being considered by Winner's Circle, nc.? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Fixed marketing cost. ? Variable costs of labor and material. 7 Fixed manufacturing costs.
Winner's Circle has just received a special one-time order for 875 medals at $305 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor. Required: 1. Which of the following costs will be relevant to Cathy Donato's analysis of the special order being considered by Winner's Circle, nc.? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Fixed marketing cost. ? Variable costs of labor and material. 7 Fixed manufacturing costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Winner's Circle has just received a special one-time order for 875 medals at $305 per medal. For this particular order, no
variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been
assigned the task of analyzing this order and recommending whether the company should accept or reject it. After
examining the costs, Donato suggested to her supervisor, Gerard LePenn, who is the controller, that they request
competitive bids from vendors for the raw material as the current quote seems high. LePenn insisted that the prices are in
line with other vendors and told her that she was not to discuss her observations with anyone else. Donato later
discovered that LePenn is a brother-in-law of the owner of the current raw-material supply vendor.
Required:
1. Which of the following costs will be relevant to Cathy Donato's analysis of the special order being considered by Winner's Circle,
Inc.? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark
will be automatically graded as incorrect.)
? Fixed marketing cost.
? Variable costs of labor and material.
? Fixed manufacturing costs.
? Variable marketing cost.
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