Question

In: Accounting

30. Which type of manager would be allowed to decide whether or not new manufacturing equipment...

30. Which type of manager would be allowed to decide whether or not new manufacturing equipment should be purchased?

a. Production manager

b. Cost center manager

c. Profit center manager

d. Investment center manager

15. In the decision-making process, which of the following tactical decision making situations would be best addressed by managers using a segmented income statement rather than a contribution margin format income statement?

a.

The decision on whether or not a one-time special order for a customer should be accepted.

b.

The calculation of the break-even point for the upcoming month.

c.

The decision on whether or not an entire product line should be discontinued.

d.

The decision on whether or not to process a product further or sell "as is".

12. Under direct costing, which of the following are costs that can be inventoried (i.e., product costs)?

a.

variable selling and administrative expense

b.

variable manufacturing overhead

c.

fixed manufacturing overhead

d.

fixed selling and administrative expense

Solutions

Expert Solution

30. The answer is option d.

Explanation: Its investment centre manager's responsibilty to take decisions regarding Investment opportunites and return expected from such investments.

15. The answer is option a.

Explanation: Because whether or not to accept one time special order from a customer is depends upon production capacity of the company, segment income statement can give accurate information regarding production capacity of each segment of the company.

12.The answer is option b.

Explanation: Direct costing is also called as variable costing , In variable costing all fixed costs are considered as period costs and not a product cost. and all selling and administration costs are also considered as period costs.Therefore direct material , direct labor and variable manufacturing costs are considered as product costs.

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ekkarill92 answered 2 years ago
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