week 5 test

week 5 test - 1 Question 1 - Multiple ChoiceID: 5630840 -...

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1 Question 1 - Multiple ChoiceID: 5630840 - Correct Question: Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production Sale price per unit $150 Variable costs per unit: Manufacturing $55 Marketing and administrative $25 Total fixed costs: Manufacturing $640,000 Marketing and administrative $280,000 If a special sales order is accepted for 3,000 sails at a price of $75 per unit, fixed costs remain unchanged, and there are no additional variable marketing and administrative costs for this order, what is the change in operating income? Operating income decreases $5,000 Operating income decreases $36,000 Operating income increases $35,000 Operating income increases $60,000 Question 2 - Multiple ChoiceID: 5630853 - Correct Question: DC Electronics uses a standard part in the manufacture of several of its radios. The cost of producing 30,000 parts is $90,000, which includes fixed costs of $33,000, and variable costs of $57,000. The company can buy the part from an outside supplier for $2.50 per unit, and avoid 30% of the fixed costs. If DC Electronics makes the part, how much will its operating income be? $6,500 greater than if the company bought the part
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2 $8,100 greater than if the company bought the part $5,100 less than if the company bought the part $15,000 less than if the company bought the part Question 3 - Multiple ChoiceID: 5630764 - Correct Question: Which of the following statements does not describe an activity-based costing system? Activity-based costing systems are more complex and costly than traditional systems Activity-based costing systems may only be used by service companies Activity-based costing systems are used in both manufacturing and nonmanufacturing companies Activity-based costing systems can create more accurate product costs Question 4 - Multiple ChoiceID: 5630799 - Correct Question: The long distance company that you use charges $5.00 per month and $0.10 per minute per call. If your current bill is $25.00, how many minutes did you use? 250 minutes 100 minutes 200 minutes 150 minutes Question 5 - Multiple ChoiceID: 5630789 - Correct Question: Which of the following refers to costs incurred in detecting poor quality goods or services?
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3 External failure costs Prevention costs Appraisal costs Internal failure costs Question 6 - Multiple ChoiceID: 5630773 - The correct answer has been circled. Question:
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week 5 test - 1 Question 1 - Multiple ChoiceID: 5630840 -...

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