Costs and Special Order

Satisfactory Essays
Student: _______________________________________________________________________________________

1. A cost is not relevant if it: A. B. C. D. E. Does not differ for each option available to the decision maker. Changes from period to period. Is a future cost. Is a mixed cost. Is a fixed cost.

2. Variable costs will generally be relevant for decision making because they: A. B. C. D. E. Differ between options. Are volume-based. Have not been committed and differ between options. Differ between options and have been committed. Measure opportunity cost.

3. Fixed costs will often be irrelevant because they: A. B. C. D. Are fixed in amount. Are the same each time period. Typically do not differ between options. Are not committed.
…show more content…
18. Which one of the following is most descriptive of strategic analysis? A. B. C. D. E. Quantitative. Customer focus. Short-term focus. Individual product focus. Not linked to the firm 's strategy.

19. Which one of the following issues would least likely be addressed during the regular review of product profitability? A. B. C. D. E. Which product managers should be rewarded? Which products are most profitable? Which product are most efficiently produced? Which products should be promoted and advertised most aggressively? Are the products priced properly?

20. An effective analysis of sales mix needs to include an analysis of: A. B. C. D. E. 21. Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs: Value chain analysis. Production constraints. Sales mix costing. Revenue forecasting. Joint manufacturing costs.

In addition to the above costs, if Valters produces part PQ107, he would also have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 are: A. B. C. D. E. $149,000. $129,800. $150,000. $164,200. $148,300.

22. A boat, costing $108,000 and uninsured, was wrecked the very first day it was used. It can either be disposed of for
Get Access