Quiz 5-solution

Quiz 5-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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Unformatted text preview: [ACCT3104] MANAGERIAL COSTING AND CONTROL (ST LUCIA AND IPSWICH). SEMESTER 2, 2008 (ACCT3104S_5860IPX) > ASSESSMENT > QUIZZES > REVIEW ASSESSMENT: QUIZ 1 12TH EDN Review Assessment: quiz 1 12th edn User Pek Yin Low Submitted 8/28/08 3:50 AM Name quiz 1 12th edn Status Completed Score 25 out of 30 points Time Elapsed 1 hours, 4 minutes, and 32 seconds out of 1 hours and 5 minutes allowed. Instructions Question 1 0 out of 1 points For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n): Selected Answer: relevant cost Question 2 1 out of 1 points The difference between the original cost of an asset and the accumulated depreciation is known as the: Selected Answer: book value Question 3 1 out of 1 points Answer the following questions using the information below: Welch Manufacturing is approached by a European customer to fulfill a one- time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $40 Direct labor 20 Manufacturing support 35 Marketing costs 15 Fixed costs: Manufacturing support 45 Marketing costs 15 Total costs 170 Markup (50%) 85 Targeted selling price $255 What is the change in operating profits if the one-time-only special order for 1,000 units is accepted for $180 a unit by Welch? Selected Answer: $70,000 increase in operating profits Question 4 1 out of 1 points Which of the following costs always differ among future alternatives? Selected Answer: relevant costs Question 5 1 out of 1 points Discontinuing unprofitable products will increase profitability: Selected Answer: if the resources no longer required by the discontinued product can be eliminated Question 6 1 out of 1 points Answer the following questions using the information below: Denly Company has three products, A, B, and C. The following information is available: Product AProduct BProduct C Sales $60,000 $90,000 $24,000 Variable costs 36,00048,00015,000 Contribution margin 24,000 42,000 9,000 Fixed costs: Avoidable 9,000 18,000 6,000 Unavoidable 6,0009,0005,400 Operating income $ 9,000 $15,000 $ (2,400) Assuming Product C is discontinued and the space formerly used to produce Product C is rented for $12,000 per year, operating income will: Selected Answer: increase by $9,000 Question 7 0 out of 1 points Answer the following questions using the information below: Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier....
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This note was uploaded on 10/21/2009 for the course ACCT 3104 taught by Professor Mrssandralazzarini during the One '09 term at Queensland.

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Quiz 5-solution - [ACCT3104] MANAGERIAL COSTING AND CONTROL...

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