Chapter 11 - Instructor Homework - Solutions

Chapter 11 - Instructor Homework - Solutions -...

Info iconThis preview shows pages 1–39. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 Homework - SOLUTIONS       1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
17) 
Background image of page 2
Full costs  of a product are relevant for one - time - only special order pricing decisions.  Answer:  
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FALSE  Explanation:  
Background image of page 4
Incremental costs of a  product are relevant for  one - time - only special  order pricing decisions. 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Diff: 2  Terms: 
Background image of page 6
full costs of the  product, one - time - only special order,  relevant costs  Objective: 
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AACSB: 
Background image of page 8
Reflective thinking 27) 
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Producing another 10,000 units  may  increase the fixed cost of rent.   Answer:  
Background image of page 10
TRUE  Explanation:  
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
True, if additional  capacity must be added  to accommodate the  additional production  needs. 
Background image of page 12
Diff: 3  Terms: 
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
incremental cost  Objective: 
Background image of page 14
AACSB: 
Background image of page 15

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Analytical skills  29) 
Background image of page 16
Sometime s qualitative factors are the most important factors in make - or - buy decisions.   Answer:  
Background image of page 17

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
TRUE  Diff: 2  Terms: 
Background image of page 18
qualitative factors  Objective: 
Background image of page 19

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AACSB: 
Background image of page 20
Reflective thinking 34) 
Background image of page 21

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
In a  make - or - buy decision when there are alternative uses for capacity, the opportunity cost of idle capacity is relevant.   Answer:  
Background image of page 22
TRUE  Diff: 3  Terms: 
Background image of page 23

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
make - or - buy  decision,  outsourcing,  opportunity cost  Objective: 
Background image of page 24
AACSB: 
Background image of page 25

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Reflective thinking  37) 
Background image of page 26
If the  $17,000  spent to purchase inventory could be invested and earn interest of $1,000, then the opportunity cost of holding inventory is  $17,000.   Answer:  
Background image of page 27

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FALSE  Explanation:  
Background image of page 28
The opportunity cost of  holding inventory is  $1,000. 
Background image of page 29

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Diff: 2  Terms: 
Background image of page 30
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/19/2010 for the course ACCOUNTING Cost taught by Professor B during the Spring '10 term at Oakton.

Page1 / 125

Chapter 11 - Instructor Homework - Solutions -...

This preview shows document pages 1 - 39. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online