Cost Accounting - Access (Custom Package)
15th Edition
ISBN: 9781269925143
Author: Horngren
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.7Q
“A component part should be purchased whenever the purchase price is less than its total
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
When deciding whether to make or buy a component part, the most relevant consideration is often:
Question options:
a) The sunk cost of equipment used to manufacture the part.
b) The unavoidable fixed manufacturing costs.
c) The average total cost of making the part.
d) The variable manufacturing costs per unit.
In Make or buy decision ,relevant costs are :
Select one:
a. manufacturing costs that will not be saved + the purchase price
b. manufacturing costs that will not be saved
c. manufacturing costs that will be saved
d. the purchase price of the units
e. manufacturing costs that will be saved + the purchase price
In Make or buy decision ,irrelevant costs are :
Select one:
a. manufacturing costs that will be saved
b. a+c
c. manufacturing costs that will not be saved
d. b+c
e. the purchase price of the units
Chapter 11 Solutions
Cost Accounting - Access (Custom Package)
Ch. 11 - Prob. 11.1QCh. 11 - Define relevant costs. Why are historical costs...Ch. 11 - All future costs are relevant. Do you agree? Why?Ch. 11 - Distinguish between quantitative and qualitative...Ch. 11 - Describe two potential problems that should be...Ch. 11 - Variable costs are always relevant, and fixed...Ch. 11 - A component part should be purchased whenever the...Ch. 11 - Prob. 11.8QCh. 11 - Managers should always buy inventory in quantities...Ch. 11 - Management should always maximize sales of the...
Ch. 11 - Prob. 11.11QCh. 11 - Cost written off as depreciation on equipment...Ch. 11 - Managers will always choose the alternative that...Ch. 11 - Prob. 11.14QCh. 11 - Prob. 11.15QCh. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Prob. 11.18ECh. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25ECh. 11 - Prob. 11.26ECh. 11 - Prob. 11.27ECh. 11 - Prob. 11.28ECh. 11 - Prob. 11.29PCh. 11 - Prob. 11.30PCh. 11 - Prob. 11.31PCh. 11 - Prob. 11.32PCh. 11 - Prob. 11.33PCh. 11 - Prob. 11.34PCh. 11 - Prob. 11.35PCh. 11 - Prob. 11.36PCh. 11 - Prob. 11.37PCh. 11 - Prob. 11.38PCh. 11 - Prob. 11.39PCh. 11 - Prob. 11.40PCh. 11 - Prob. 11.41PCh. 11 - Prob. 11.42PCh. 11 - Prob. 11.43PCh. 11 - Prob. 11.44PCh. 11 - Prob. 11.45P
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- What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?arrow_forwardHow can there be a different number of equivalent units for materials as compared to conversion costs?arrow_forwardWhen operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint costarrow_forward
- For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard costarrow_forwardWith nonuniform inputs, the cost of EWIP is calculated by a. adding the materials cost to the conversion cost. b. subtracting the cost of goods transferred out from the total cost of materials. c. multiplying the unit cost in each input category by the equivalent units of each input found in EWIP. d. multiplying the total unit cost by the units in EWIP. e. None of these.arrow_forwardA manufacturing process may produce a considerable quantity of scrap material because of the nature of the product. What methods can be used to account for the sales value of scrap material?arrow_forward
- Which of the following is likely to be used to reduce the cost of reworking products? a. Activity sharing b. Activity elimination c. Activity reduction d. Activity selectionarrow_forwardWhy is the number of equivalent units for materials only sometimes equal to the equivalent units for conversion?arrow_forwardWhich of the three methods for allocating costs of products can lead to significant product cost distortions?arrow_forward
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Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License