ACCT 6100- Quiz1.docx - Chapter 01 Introduction 1 The...

This preview shows page 1 - 2 out of 17 pages.

Chapter 01 Introduction 1. The firm's information system: may include other information such as customer satisfaction surveys, in addition to financial information 2. Identify all the correct statements: To align the interests of managers and owners, owners must design systems to monitor and reward management behavior that increases the firm's profits 3. An internal accounting system should: all of the above 4. Economic Darwinism: B. explains why some inefficient accounting practices persist 5. Management accountants: A.are internal consultants B.are mainly score-keepers E.mostly a &b 6. Internal control systems: B. include anti-fraud measures 7. Performance measures: A. are critical in designing a reward system 8. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. What is the "cost" per unit in the context of evaluating the offer from Coyote Corp.?
9. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. On this information alone, should Micro accept the offer?
10. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?
11. Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. Assuming the same story, but Coyote's offer is for 1,500 units (all or nothing), should

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture