iclicker_041111__and_selected_CH_12

iclicker_041111__and_selected_CH_12 - On dropping a segment...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
On dropping a segment Costs which can be eliminated in whole or in part if a particular business segment is discontinued are called: A. sunk costs B. avoidable costs C. opportunity costs D. irrelevant costs Convery - Spring 2011 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
On make or buy A company produces a part at a unit cost of $18: Direct materials $ 8 Direct labor 4 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost $18 An outside supplier has offered to provide the annual requirement of 4,000 of the parts for only Convery - Spring 2011 2
Background image of page 2
On reworking or selling as is A company has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the incremental effect on the company’s overall profit of reworking and selling the material rather than selling it as is as scrap? A. -$79,100 B.$21,700 C. -$4,500 D. $52,900 Convery - Spring 2011 3
Background image of page 3

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

View Full DocumentRight Arrow Icon
DEMO: Total and Differential Cost Approaches
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/21/2011 for the course ACC 202 taught by Professor Sue during the Spring '10 term at Michigan State University.

Page1 / 10

iclicker_041111__and_selected_CH_12 - On dropping a segment...

This preview shows document pages 1 - 5. Sign up to view the full document.

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