Which of the following is NOT one of the common exit barriers? Select one: O a. A high return unit may provide input for low-return units so the firm may not like to quit high-return business. O b. Emotional attachment to the business may ruin if the company does not exit the business for sentimental reason O. The cost of exit is high. The terminal benefits of redundant workers are high O d. Investment in plant and machinery has no alternative use and cannot be sold off

Which of the following is NOT one of the common exit barriers? Select one: O a. A high return unit may provide input for low-return units so the firm may not like to quit high-return business. O b. Emotional attachment to the business may ruin if the company does not exit the business for sentimental reason O. The cost of exit is high. The terminal benefits of redundant workers are high O d. Investment in plant and machinery has no alternative use and cannot be sold off

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4CMA: Morrisons Plastics Division, a profit center, sells its products to external customers as well as to...

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Morrisons Plastics Division, a profit center, sells its products to external customers as well as to other internal profit centers. Which one of the following circumstances would justify the Plastics Division selling a product internally to another profit center at a price that is below the market-based transfer price? a. The buying unit has excess capacity. b. The selling unit is operating at full capacity. c. Routine sales commissions and collection costs would be avoided. d. The profit centers managers are evaluated on the basis of unit operating income.
When a Dupont analysis reveals that a company has much higher than average asset turnover and much lower than average profit margin, what can be concluded about the companys strategy? a. It is a product differentiator. c. It has no strategy. b. It needs to concentrate on improve- d. It is a low-cost provider ing its profit margins.
Many outsourced jobs have resulted in offshoring jobs, rather than using domestic outsourcing. If a U.S. company wants to offshore a service like customer service, for example, what are some of their considerations? In your answer, address offshoring disadvantages as compared with domestic outsourcing.
Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize production
What does a consistently negative responsibility marginimply will happen to the operating income of the business ifthe center is closed? Why? Identify several other factors thatshould be considered in deciding whether or not to close thecenter.
Consider how Break-Even analysis would change (i.e. how is the breakeven point affected) in the following scenarios. Note that each scenario is independent and all non-specified factors remain unchanged: The firm finds it necessary to reduce the sales price per unit because of competitive conditions in the market. The firm’s direct labor costs increase as a result of a new labor contract The Occupational Safety and Health Administration requires the firm to install new ventilating equipment in its plant (assume that this action has no effect on worker productivity). In your paper, make sure to demonstrate how Break-Even analysis might align with Biblical Perspectives and also discuss how this type of analysis might affect or has affected your decision-making whether in business or personal ventures.
The barrier to entry that helps reduce the threat of new entrants for an incumbent firm using a cost-leadership strategy would mean _______ a) Having a substantially lower cost compared to competitors b) Being able to charge a higher price than competitors c) Having a substantially higher cost compared to competitors d) Being able to command a higher cost than competitors from its suppliers
Which of the following is NOT a principle of lean manufacturing? a. Products are pushed from the production end to the customer. b. All activities that do not add value and maximize the use of scarce resources must be eliminated. c. Achieve high inventory turnover rate. d. A lean manufacturing firm must have established and cooperative relationships with vendors. e. All of the above are lean manufacturing principles.
Which of the following statements is true? Eliminating nonproductive processing time is particularly important in a bottleneck operation. Payment of overtime to a worker in order to relax a production constraint could increase the profits of a company. Which of the following statements is true? In a factory operating at capacity, every machine and person should be working at the maximum possible rate. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units.
The barrier to entry that helps increase the threat of new entrants for an incumbent firm using a cost-leadership strategy would?
Which of the following is NOT a principle of lean manufacturing?a. Achieve high inventory turnover rate.b. All activities that do not add value and maximize the use ofscarce resources must be eliminated.c. Products are pushed from the production end to the customer.d. A lean manufacturing firm must have established andcooperative relationships with vendors.
Explain with an example why managers find it difficult to adopt a decision alternative even when the relevance cost analysis shows the superiority of this decision alternative to maximize operating income over other decision alternatives. What might the company do to reduce the pressure on management and decrease the ethical conflict?