管理會計作業(yè)：short-term

1、Chapter 10: Short-Term Business Decisions10.1-1Financial data is relevant to a decision if it involves a cash flow in the future and the cash flow differs among alternatives.Answer: True10.1-2A depreciable assets original cost is relevant with respect to considering whether to replace the depreciabl

2、e asset.Answer: False10.1-3Unavoidable fixed costs are irrelevant to the decision making process. Answer: True10.1-4A sunk cost is a cost that was previously incurred and is irrelevant to the decision making process.Answer: True10.1-5Managers decisions are based primarily on quantitative data becaus

3、e the qualitative factors are not usually relevant to the decision making process. Answer: False10.1-6Fixed costs, while generally irrelevant to the decision-making process, may change and become relevant.Answer: True10.1-7Fixed costs that do not differ between two alternatives are: A) relevant to t

4、he decision.B) considered opportunity costs. C) irrelevant to the decision. D) important only if they represent a material dollar amount. Answer: C10.1-8Which of the following is a sunk cost?A) Depreciation on new vehicleB) Trade-in value of old vehicle C) Purchase price of new vehicleD) Purchase pr

5、ice of vehicle to be traded in Answer: D10.1-9All of the following are relevant to the decision to replace equipment except the:A) cost of new equipment.B) selling price of old equipment.C) future maintenance costs of old equipment.D) cost of old equipment. Answer: D10.1-10In making a short-term dec

6、ision, which of the following is most important?A) Separate variable costs from fixed costsB) Focus on total costsC) Use a conventional absorption costing approachD) Discount cash flows to their present valueAnswer: A10.1-11Which of the following describes a sunk cost?A) It is relevant to a decision

7、 because it changes depending on the alternative course of action selected.B) An outlay expected to be incurred in the future.C) A historical cost that is always irrelevant.D) A historical cost that may be relevant. Answer: C10.1-12Which of the following is the format of the income statement that is

8、 most useful in decision-making?A) Absorption costing formatB) Multiple-step formatC) Single-step formatD) Contribution margin format Answer: D10.1-13 Smith Industries is considering replacing a machine that is presently used in its production process. The following information is available:Old Mach

9、ineReplacement MachineOriginal cost$45,000$35,000Remaining useful life in years55Current age in years50Book value $25,000Current disposal value in cash$8,000Future disposal value in cash (in 5 years)$0$0Annual cash operating costs$7,000$4,000Which of the information provided in the table is irreleva

10、nt to the replacement decision?A) The annual operating cost of the old machineB) The original cost of the old machine C) The current disposal value of the old machineD) Both A and C are correctAnswer: B9.1-14Smith Industries is considering replacing a machine that is presently used in its production

11、 process. The following information is available:Old MachineReplacement MachineOriginal cost$45,000$35,000Remaining useful life in years55Current age in years50Book value $25,000Current disposal value in cash$8,000Future disposal value in cash (in 5 years)$0$0Annual cash operating costs$7,000$4,000F

12、or a machine replacement decision which of the information provided in the table is a sunk cost?A) The original cost of the old machine B) The current disposal value of the old machineC) The current annual operating cost of the old machine D) Both A and B are correctAnswer: A9.1-15Smith Industries i

13、s considering replacing a machine that is presently used in its production process. The following information is available:Old MachineReplacement MachineOriginal cost$45,000$35,000Remaining useful life in years55Current age in years50Book value $25,000Current disposal value in cash$8,000Future dispo

14、sal value in cash (in 5 years)$0$0Annual cash operating costs$7,000$4,000How much are the total relevant costs associated with keeping the old machine?A) $35,000B) $40,000C) $47,000D) $60,000Answer: A10.1-16The benefit foregone by not choosing an alternative course of action is referred to as a(n):A

15、) opportunity cost.B) sunk cost.C) variable cost.D) incremental cost.Answer: A10.1-17Fixed costs that may be avoided in the future are referred to as:A) replacement costs. B) opportunity costs.C) relevant costs. D) sunk costs.Answer: C10.1-18The effect of a plant closing on employee morale is an exa

16、mple of which of the following?A) A quantitative factorB) A qualitative factorC) A sunk costD) A variable costAnswer: B10.1-19Which of the following is not important with respect to short-run decision making?A) Focusing on relevant revenues and costs.B) Using a contribution margin income statement f

17、ormat rather than an absorption costing format.C) Focusing on maximizing the gross profit of each unit sold.D) Focusing on analyzing incremental revenues and costs.Answer: C10.1-20Which of the following is irrelevant when making a decision?A) The cost of an asset that the company is considering repl

18、acing. B) The fixed overhead costs that differ among decision alternatives.C) The cost of further processing a product that could be sold as is. D) The expected increase in contribution margin of one product line as a result of a decision to drop a separate unprofitable product line.Answer: A 10.2-1

19、Special sales orders increase operating income if the revenue from the order exceeds the incremental variable and fixed costs incurred to fill the order. Answer: True10.2-2In deciding whether to accept a special sales order, management should consider the quantitative data as well as the qualitative

20、 factors.Answer: True10.2-3Fixed costs are relevant to a special sales order decision when those fixed costs change as a result of the special order.Answer: True10.2-4When determining selling prices, a company must consider whether it is a price-taker or a price-setter for each product that it sells

21、.Answer: True10.2-5A company viewing itself as a price-taker generally utilizes a target pricing approach.Answer: True10.2-6Revenue at market price plus desired operating profit equals a products target full cost.Answer: False10.2-7An opportunity cost must be taken into consideration for a special s

22、ales order decision.Answer: True10.2-8When making a pricing decision, it is not necessary to separate costs into fixed and variable since only total costs matter. Answer: False10.2-9Which of the following costs is irrelevant with respect to a special sales order decision? A) Additional fixed costs t

23、hat will be incurred to complete the order.B) Fixed costs that are determined to be unavoidable.C) Special packaging costs associated with the order.D) Variable manufacturing costs incurred to complete the order. Answer: B10.2-10In a special sales order decision, incremental fixed costs incurred bec

24、ause of an additional purchase of equipment are considered to be:A) relevant to the decision.B) irrelevant to the decision.C) opportunity costs.D) sunk costs.Answer: A10.2-11Each month, Tuttle Corporation produces 400 units of a product that has unit variable costs of $16.00. Total fixed costs for t

25、he month are $3,400. A special sales order is received for 100 units of the product at a price of $18 per unit. In deciding to accept or reject the special sales order, it is appropriate to consider:A) new fixed cost per unit of $6.80.B) current fixed cost per unit of $8.50.C) the difference between

26、 the offered price and the variable cost per unit, or $2.00. D) the difference between the two fixed costs per unit, or $1.70. Answer: C10.2-12 Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling

27、20,000 sails per year. The following information relates to current production:Sale price per unit$150Variable costs per unit: Manufacturing$55 Marketing and administrative$25Total fixed costs: Manufacturing$640,000 Marketing and administrative$280,000If a special sales order is accepted for 5,000 s

28、ails at a price of $125 per unit, and fixed costs remain unchanged, what is the change in operating income?A) Operating income decreases $5,000.B) Operating income increases $190,000.C) Operating income decreases $125,000.D) Operating income increases $225,000.Answer: D10.2-13Lowwater Sailmakers man

29、ufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:Sale price per unit$150Variable costs per unit: Manufacturing$55 Marketing and administr

30、ative$25Total fixed costs: Manufacturing$640,000 Marketing and administrative$280,000If a special sales order is accepted for 3,000 sails at a price of $75 per unit, fixed costs remain unchanged, and there are no additional variable marketing and administrative costs for this order, what is the chan

31、ge in operating income? A) Operating income decreases $5,000. B) Operating income decreases $36,000.C) Operating income increases $35,000.D) Operating income increases $60,000.Answer: D10.2-14Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails p

32、er year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:Sale price per unit$150Variable costs per unit: Manufacturing$55 Marketing and administrative$25Total fixed costs: Manufacturing$640,000 Marketing and administrative$280,000

33、If a special sales order is accepted for 2,000 sails at a price of $95 per unit, and fixed costs increase by $10,000, what is the change in operating income affected?A) Operating income decreases $34,000.B) Operating income decreases $44,000.C) Operating income increases $20,000.D) Operating income

34、increases $25,000.Answer: C 10.2-15Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:Sale price per unit$150Variabl

35、e costs per unit: Manufacturing$55 Marketing and administrative$25Total fixed costs: Manufacturing$640,000 Marketing and administrative$280,000If a special sales order is accepted for 2,500 sails at a price of $70 per unit, fixed costs increase by $10,000, and variable marketing and administrative c

36、osts for that order decrease by $5 per unit, what is the change in operating income? A) Operating income decreases $22,500.B) Operating income decreases $82,500.C) Operating income decreases $10,000.D) Operating income increases $22,500.Answer: A10.2-16Dakoka Corporation provided the following infor

37、mation regarding its only product:Sales price per unit$60Direct materials used$160,000Direct labor costs incurred$230,000Variable manufacturing overhead costs incurred$150,000Variable selling and administrative costs incurred$60,000Fixed manufacturing overhead costs incurred$80,000Fixed selling and

38、administrative costs incurred$10,000Units produced and sold12,000Assume no beginning inventoryAssuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1,000 units at a sales price of $40 per unit? A) Operating income decreases $10,0

39、00.B) Operating income decreases $15,000.C) Operating income increases $10,000.D) Operating income increases $80,000.Answer: A10.2-17Dakoka Corporation provided the following information regarding its only product:Sales price per unit$60Direct materials used$160,000Direct labor costs incurred$230,00

40、0Variable manufacturing overhead costs incurred$150,000Variable selling and administrative costs incurred$60,000Fixed manufacturing overhead costs incurred$80,000Fixed selling and administrative costs incurred$10,000Units produced and sold12,000Assume no beginning inventoryAssuming there is excess c

41、apacity, what would be the change in operating income as a result of accepting a special order for 1,000 units at a sales price of $55 per unit assuming additional fixed manufacturing overhead costs of $7,000 would be incurred? A) Operating income decreases $2,000.B) Operating income decreases $5,00

42、0.C) Operating income decreases $87,000.D) Operating income increases $2,000.Answer: A10.2-18Dakoka Corporation provided the following information regarding its only product:Sales price per unit$60Direct materials used$160,000Direct labor costs incurred$230,000Variable manufacturing overhead costs i

43、ncurred$150,000Variable selling and administrative costs incurred$60,000Fixed manufacturing overhead costs incurred$80,000Fixed selling and administrative costs incurred$10,000Units produced and sold12,000Assume no beginning inventoryAssuming there is excess capacity, what would be the change in ope

44、rating income as a result of accepting a special order for 800 units at a sales price of $46 per product? The 800 units would not require any variable selling and administrative expenses. A) Operating income decreases $800.B) Operating income decreases $3,200.C) Operating income increases $800.D) Op

45、erating income increases $3,200.Answer: C10.2-19Perfect Time Company manufactures and sells watches. Great Products Company has offered Perfect Time $21 per watch for 5,000 watches. Perfect Times normal selling price is $36 per watch. The total manufacturing cost per watch is $24 and consists of var

46、iable costs of $18 per watch and fixed overhead costs of $6 per watch. What is the change in operating income resulting from the special sales order? A) $15,000 B) ($15,000) C) $105,000 D) ($60,000)Answer: A10.2-20Perfect Time Company manufactures and sells watches. Great Products Company has offere

47、d Perfect Time $21 per watch for 5,000 watches. Perfect Times normal selling price is $36 per watch. The total manufacturing cost per watch is $24 and consists of variable costs of $18 per watch and fixed overhead costs of $6 per watch. What is the change in operating income assuming that 2,000 unit

48、s of sales to regular customers will have to be given up? A) ($21,000)B) $15,000C) $33,000D) (9,000)Answer: A10.2-21When pricing a product or service, managers must consider which of the following?A) Only variable costsB) Only period costsC) Only manufacturing costsD) All costsAnswer: D10.2-22Burr H

49、ill golf course is planning for the coming season. Investors would like to earn a 10% return on the companys $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. About 500,000 golfers are

50、 expected each year. Variable costs are about $10 per golfer. The Burr Hill golf course has a favorable reputation in the area and therefore, has some control over the price of a round of golf. Using a cost-plus approach, what price should Burr Hill charge for a round of golf?A) $50B) $60C) $70D) $8

51、0Answer: C10.2-23Burr Hill golf course is planning for the coming season. Investors would like to earn a 10% return on the companys $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golfing season. Ab

52、out 500,000 golfers are expected each year. Variable costs are about $10 per golfer. The Burr Hill golf course is a price-taker and wont be able to charge more than its competitors who charge $65 per round of golf. What profit will it earn in terms of dollars?A) $2,500,000B) $25,000,000C) $30,000,00

53、0D) $32,500,000Answer: A10.2-24Burr Hill golf course is planning for the coming season. Investors would like to earn a 10% return on the companys $50 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $25,000,000 for the golf

54、ing season. About 500,000 golfers are expected each year. Variable costs are about $10 per golfer. The Burr Hill golf course is a price-taker and wont be able to charge more than its competitors who charge $65 per round of golf. What profit will it earn as a percent of assets?A) 2.5%B) 5.0%C) 10.0%D) 12.5%Answer: B10.2-25Which of the following statements is not accurate? A) A milk producing company does not control the market price and as a result is a price-taker. B) A custom-made furniture manufacturer has some control over the market price and as