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 ,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

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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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 cost
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
When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest one to use to establish the price. OA. Manufacturing cost B. Full absorption cost OC. Prime cost OD. Variable costs
(Management Accounting) In make-or-buy decisions for a part for a product, relevant costs include ________. A) some variable costs of making the part B) all variable costs of making the part C) fixed costs that can be avoided in the future if the part is purchased D) B and C
When pricing a product or service, managers must consider which of the following? a. Only period costs b. Only manufacturing costs c. Only variable costs d. All costs
5) Choosing to outsource a component of a product or manufacture it internally is an example of a(n): A. Opportunity cost. B. Sunk cost. C. Out-of-pocket cost. D. Period cost. E. Fixed cost.
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Costs that will differ between alternatives and influence the outcome of a decision are Select one: Oa. None of the answers are correct O b. Sunk costs. O c. Relevant costs. O d. Product costs. O e. Period costs.
Which components correspond to the following terms? Match each item to a choice: Choices: Selling price of perishable goods Selling price, variable costs Fixed expenses Contribution margin Equipment, cost of goods sold, labor Selling price, variable costs, contribution margin ratio Quantity, mark-up/down, spoilage Payroll, utilities, insurance
In a make or buy decision, the relevant costs include variable manufacturing costs as well as A. Depreciation costs B. General office cost C. Avoidable fixed costs D. Factory management cost
Which of the following statements best describes conversion costs? OA. Conversion costs are all manufacturing and nonmanufacturing costs. OB. Conversion costs are all nonmanufacturing costs other than fixed selling and distribution costs OC. Conversion costs are all nonmanufacturing costs including marketing costs. O D. Conversion costs are all manufacturing costs other than direct materials costs.
Required: 1. The carrying value of ending inventory under variable costing would be? 2. Under absorption costing, the cost of good sold would be?