MANAGERIAL ACCOUNTING LL 8TH ED+CONNECT
8th Edition
ISBN: 9781260701135
Author: BREWER
Publisher: MCG
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Textbook Question
Chapter P, Problem 3Q
It you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative and qualitative factors would influence your decision?
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An automobile manufacturer has decided to allow suppliers to bid on all parts necessary to make its vehicle. What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?
Which of the following is not a qualitative factor that Atlas Manufacturing should consider when deciding whether to buy or make a part used in manufacturing their product?
a. Quality of the outside producer’s product.
b. Potential loss of trade secrets.
c. Manufacturing deadlines and special orders.
d. Variable cost per unit of the product.
Chapter P Solutions
MANAGERIAL ACCOUNTING LL 8TH ED+CONNECT
Ch. P - How does managerial accounting differ from...Ch. P - Pick any major television network describe some...Ch. P - It you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Prob. 5QCh. P - Prob. 6QCh. P - Prob. 7QCh. P - Why do management accountants need to understand...Ch. P - Prob. 9QCh. P - Pick three industries and describe the risks faced...
Ch. P - Pick any large company and explain there ways that...Ch. P - Locate the website of any company that publishes a...Ch. P - Why do companies that implement Lean Production...Ch. P - Why are leadership skills important to managers?Ch. P - Prob. 15QCh. P - If you were a restaurant owner, what internal...Ch. P - Prob. 17QCh. P - Prob. 18QCh. P - Why do companies take a physical count of their...Ch. P - Why do companies use sequential prenumbering for...Ch. P - Planning and Control Many companies use budgets...Ch. P - Controlling Assume that you work for an airline...Ch. P - Prob. 3ECh. P - Ethics and the Manager Richmond. Inc., operates a...Ch. P - Prob. 5ECh. P - Prob. 6ECh. P - Ethics in Business Consumers and attorney generals...Ch. P - Prob. 8ECh. P - Prob. 9ECh. P - Prob. 10ECh. P - Prob. 11ECh. P - Cognitive Bias and Decision Making During World...Ch. P - Ethics and Decision Making Assume that you just...
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- a) Calculate net advantage of buying the part from the external supplier. b) Should the offer be accepted or should Elric continue to produce the product in house?arrow_forwardWhich of the following items would be relevant in the decision of buying a component part instead of making it? I) The variable cost of making the component part II) The cash proceeds from selling the special equipment used to make the component part III) The cost of buying the component part from an outside supplier IV) The general fixed cost that is allocated to the component part Multiple Choice a) I), II), and IV) b) I), II), and III) c) I) and III) d) II) and IV)arrow_forwardQualitative and quantitative factors. Which of the following is not a qualitative factor that Atlas Manufacturing should consider when deciding whether to buy or make a part used in manufacturing their product? Quality of the outside producer’s product. Potential loss of trade secrets. Manufacturing deadlines and special orders. Variable cost per unit of the product.arrow_forward
- Determine the maximum amount per unit Whalen Industries could pay an outside supplier? Indicate if the company should make or buy the component and the total dollar difference in favor of that alternative?arrow_forwardWhich of the following is relevant to Limited's decision to accept a special order at a lower price?the shipping costs to the customer CEO's salary Limited's investment its warehouse the cost of its furniture and fixturesarrow_forwardConcerning computer software to be sold, leased, or otherwise marketed, which of the following costs are inventoriable and thus included in cost of goods sold? a. maintenance and customer support costsb. design, coding, and testing costs incurred before technological feasibility is establishedc. costs of software developed for internal used. costs of disks, software duplication, and training materialsarrow_forward
- How can Firms that do not want to become involved in licensing or to become heavily involved in global marketing engage in contract manufacturing?arrow_forwardAll of the following should be considered in a make-or-buy decision excepta. quality issues with the supplierb. future growth in the plant and other production opportunitiesc. whether the supplier will make a profit that would no longer belong to the business d. cost savingsarrow_forwardNestle has traditionally used a strategy whereby they customize their products for the different countries. Which staffing approach will most likely be effective with this strategy? O ethnocentric O polycentric cost-intensive talent-intensivearrow_forward
- 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.arrow_forwardWhat considerations should managers make when deciding whether to sell a product as-is or after additional processing?arrow_forward"Companies with labor incentive manufacturing processes are most likely to benefit from sending manufacturing operations overseas because the bulk of potential cost savings relate to labor costs".Question: Identify relevant and irrelevant costs and benefits in a decision. (Note: Samsung Manufacturing)arrow_forward
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