2) as soon as replacing an old asset with a brand-new one, the original purchase price that the old asset represents a(n) ________ cost.A) relevant B) differentialC) opportunityD) sunk
3) which of complying with statements is true of momentary decision making?A) solved costs and variable costs must be analyzed separately.B) All prices behave in the exact same way.C) Unit manufacturing expenses are change costs.D) every costs affiliated in a decision are considered relevant.
You are watching: Which of following statements is true of short-term decision making?
4) The donation margin strategy helps managers in temporary decision making because it ________.A) treats fixed production overhead as product costB) reports only mixed costsC) reports costs and also revenues at current valueD) isolates prices by behavior
Regarding relevant nonfinancial information, i m sorry of the following statements is incorrect?A) Nonfinancial, or qualitative, components play a role in managers\" decisions and, together a result, have the right to be relevant.B) pertinent qualitative information has actually the same characteristics as pertinent financial information.C) managers must constantly consider the potential quantitative and qualitative effects of your decisions.D) Qualitative determinants can be ignored since these components are complicated to measure.
5) Differential evaluation is a method that ________.A) evaluate both relevant and also irrelevant informationB) considers all locations of the classic income statementC) is not provided for momentary decision makingD) watch at how operating revenue would different under each decision alternative
6) i m sorry of the complying with provides a vital in analyzing short-term company decisions?A) emphasis on prices that perform not adjust under two options and on historical costsB) focus on qualitative data only and also ignore future cash flowsC) focus on sunk costs and also quantitative dataD) emphasis on pertinent costs and also use the donation margin approach
7) Rica company is a price-taker and also uses a target-pricing approach. Describe the complying with information:Production volume 600,000 systems per yearMarket price $30 every unitDesired operating revenue 17% of complete assetsTotal legacy $13,900,000 What is the preferred profit for the year?A) $102,000B) $18,000,000C) $4,100,000D) $2,363,000
PPOBLEM 8) Revolve company is a price-taker and also uses a target-pricing approach. Refer to the complying with information:Production volume 602,000 systems per yearMarket price $32 every unitDesired operating earnings 15% of complete assetsTotal heritage $13,700,000 What is the target complete product expense in full for the year? Assume all units created are sold.A) $90,300B) $17,209,000C) $13,700,000D) $2,055,000
BExplanation: Revenue at sector price (602,000 × 32) $19,264,000Less: desired profit (13,700,000 × 15%) 2,055,000Target cost $17,209,000
PROBLEM 9) Peacock, Inc. Sell 2,000 kayaks per year at a sales price the $460 per unit. That sells in a highly competitive market and also uses target pricing. The company has calculated its target full product expense at $810,000 per year. Fixed expenses are $340,000 per year and also cannot it is in reduced. What is the target variable price per unit assuming units sold are equal to systems produced? A) $235B) $405C) $575D) $170
AExplanation: Target full product expense $810,000Less: Fixed expenses 340,000Target variable costs $470,000Target variable expense per unit = $470,000 / 2,000 units = $235
11) If a company wants to it is in a price-taker, i m sorry of the following strategies must be taken?A) get in a vain market and also focus on expense cutting.B) develop a distinct product.C) exploit the worth of a stylish brand name.D) distinguish the product clearly from the competitors.
12) i m sorry of the adhering to statements is true?A) companies are price-takers once their commodities are unique.B) providers are price-setters for a product as soon as there is extreme competition.C) providers are price-takers for a product as soon as the pricing technique emphasizes cost-plus pricing.D) carriers are price-takers when they have tiny or no control over the prices of their commodities or services.
See more: John Romero Is About To Make You His Bitch ", John Romero'S About To Make You His Bitch
14) which of the following is a significant consideration when examining a distinct pricing decision?A) The sales price should be high enough to cover any differential prices to to fill the order.B) The company must have a good stock turnover ratio.C) The profit margin that the distinct sale have to be greater than the continuous sales.D) The sunk prices of the decision need to not exceed the irrelevant costs.
15) Venlite, Inc. Produces and also sells cosmetic products. Currently, the agency is operating at 70% of its capacity. The sales price the its product is $30 per unit, and also it incurs a full price of $25 to create each unit. Its yearly fixed production overhead quantities to $20,000. The agency has received a one-time bespeak for giving 5,000 units at $26 per unit. This order have the right to be executed in ~ the excess manufacturing capacity and also will not involve any added costs. To make this decision, the management of Venlite need to use ________.A) absorption costing together the decision is long-term in natureB) change costing together the decision is momentary in natureC) absorption costing as the decision is short-lived in natureD) variable costing together the decision is permanent in nature
WORK difficulty Home Bakery Living can manufacture 6 toaster ovens per maker hour and four bread equipments per maker hour. Residence Bakery\"s production capacity is 2,000 an equipment hours per month. What is the donation margin per maker hour for toaster ovens? (Round machine hour every unit to two decimal places and your last answer to the nearest entirety dollar.) A) $120B) $20C) $14D) $320
AExplanation: Sales price $80Variable costs 60Contribution margin $20Toaster ovens per hour 6Contribution margin per an equipment hour $120
22) Gnome firm is deciding whether to proceed to produce a component or to buy the component from a supplier. Which of the following is appropriate to this decision?A) the potential provides of the infrastructure that are currently used to manufacture the componentB) the insurance on the manufacturing facility the will proceed regardless that the decisionC) fixed costs that execute not differ in between the alternativesD) the cost of the equipment that is right now being used to manufacture the component