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11) Which of the following represents a qualitative factor? A) any

Question : 11) Which of the following represents a qualitative factor? A) any : 1837754

11) Which of the following represents a qualitative factor?

A) any nonfinancial factor

B) historical costs

C) relevant costs

D) the timing of variable costs

E) an outcome that cannot be measured in numerical terms

12) A one-time-only special order decision

A) should consider only long-term costs and benefits.

B) must still consider short-term and long-term costs and benefits.

C) allows a company to sell products at prices which only cover fixed costs.

D) should consider only short-term costs and benefits.

E) should only be undertaken if there is idle capacity.

13) Comics Plus has a current production level of 200,000 comics per month. Unit costs at this level are:

Direct materials

$0.125

Direct labour

0.200

Variable overhead

0.075

Fixed overhead

0.100

Marketing - Fixed

0.100

Marketing/distribution - Variable

0.200

Current monthly sales are 180,000 units. Printers Ltd. has contacted Comics Plus about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order, and variable marketing/distributing costs would not be incurred on the special order.

What is Comics Plus' change in profits if the order is accepted?

A) $6,000 increase

B) $6,000 decrease

C) $7,500 increase

D) $9,000 increase

E) $3,000 increase

14) Northern Glass Manufacturing has a current production level of 200,000 glass jars per month. Unit costs at this level are:

Direct materials

$0.345

Direct labour

0.400

Variable overhead

0.175

Fixed overhead

0.100

Marketing - Fixed

0.100

Marketing/distribution - Variable

0.200

Current monthly sales are 180,000 units. Canadian Hardware Ltd. has contacted Northern Glass Manufacturing about purchasing 15,000 units at $1.00 each. Current sales would not be affected by the special order, and variable marketing/distributing costs would not be incurred on the special order.

What is Comics Plus' change in profits if the order is accepted?

A) $4,800 increase

B) $4,800 decrease

C) $1,800 decrease

D) $300 decrease

E) $1,200 increase

15) First Image has a plant capacity of 80,000 units per month. Unit costs at capacity are:

Direct materials

$2.00

Direct labour

3.00

Variable overhead

1.50

Fixed overhead

1.50

Marketing - Fixed

3.50

Marketing/distribution - Variable

1.80

Current monthly sales are 78,000 units at $12.60 each. Computer Output Management has contacted First Image about purchasing 2,000 units at $12.00 each. Current sales would not be affected by the special order. What is First Image's change in profits if the order is accepted?

A) $7,400 increase

B) $8,600 increase

C) $4,400 increase

D) $2,600 decrease

E) $3,600 decrease

16) Ratzlaff Company has a current production level of 20,000 units per month. Unit costs at this level are:

Direct materials$0.25

Direct labour0.40

Variable overhead0.15

Fixed overhead0.20

Marketing - fixed0.20

Marketing/distribution - variable0.40

Current monthly sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff Company's change in operating profits if the special order is accepted?

A) $400 increase in operating profits

B) $400 decrease in operating profits

C) $1,800 increase in operating profits

D) $1,800 decrease in operating profits

E) $1,500 increase in operating profits

17) Precision Sewing Company incorporates the services of Rosie's Sewing. Precision purchases pre-cut dresses from Rosie's. This is primarily known as

A) insourcing.

B) outsourcing.

C) product needs analysis.

D) product specialization.

E) qualitative analysis.

18) Anchor Sign Company manufactures signs from direct materials to the finished product. This is an example of which of the following?

A) insourcing

B) outsourcing

C) product needs analysis

D) product specialization

E) utilization of idle facilities

19) Omark Corporation currently manufactures a subassembly for its main product. The variable costs per unit are $48, in addition to a $6 charge based on estimated selling expenses.

R-Corp has contacted Omark with an offer to sell them 5,000 of the subassemblies for $44.00 each. Omark will eliminate $50,000 of fixed overhead if it accepts the proposal.

What is increase or decrease in profit from accepting the offer?

A) $50,000 increase

B) $100,000 increase

C) $170,000 increase

D) $50,000 decrease

E) $70,000 increase

20) When considering a project that will require production using otherwise idle resources, which of the following are TRUE?

A) Avoidable fixed costs are irrelevant.

B) Only the variable costs of the project are relevant.

C) Only financial factors should be considered.

D) The project should not be undertaken if total revenue from the project is less than the total costs of production.

E) In the short run, even if revenue is less than the total costs of production, the project could help the company's overall operating income.

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