Question

In: Accounting

13-A contribution price, one lower than the regular price is most appropriate under the following conditions...

13-A contribution price, one lower than the regular price is most appropriate under the following conditions except: Select one: a. where there is full capacity b. where there is idle capacity c. where operating in a distress situation d. when faced with sharp competition e. when in a competitive bidding situation

14-

Examples of outsourcing decisions include all except:

Select one:

a. whether to buy or make sub components

b. whether to process payroll in-house or outside service

c. provide processing services internally or buy them

d. manage fleets of vehicles or use outside delivery service

e. use in house selling or inside marketing

15-

Management can relax a constraint by all but:

Select one:

a. expand the capacity of a bottleneck

b. outsourcing or subcontracting

c. working overtime

d. eliminate value-added activities at the bottleneck

e. retraining employees and shifting them to the bottleneck

16-Common mistakes to avoid in decision making when identifying relevant costs and benefits include all except:

Select one:

a. ignore sunk costs

b. beware of unitized fixed costs in decision making

c. beware of out-of-pocket-costs

d. beware of allocated fixed costs; identifying the avoidable costs

e. fail to identify opportunity cost

17-

Long-term investment features include all except:

Select one:

a. large amounts of initial cash outlay

b. recurring cash in flows over the life of the investment

c. income tax factors

d. time value of money

e. segmenting profit margins

17

Solutions

Expert Solution

13. A contribution price is lower than regular price when faced with sharp competition as only lowering the price is the option to keep the market share. Thus, option d is the correct answer.

14. Example of outsource decision does not include use in house selling or inside marketing as both are options within an organization. Thus, option e is the correct answer.

15. Management can relax a constraint by all except eliminating value added activities at the bottleneck as this would not result in relaxation of constraint. Thus, option d is the correct answer.

16. Beware of unitized fixed costs in decision making is not a common mistake in decision making as to identify relevant costs and benefits. Thus, option b is the correct answer.

17. Long term investment features include all except segmenting profit margins as it has nothing to do with long term investment. Thus, option e is the correct answer.   


Related Solutions

Under competitive competitions, why can a market price not be higher or lower than the price...
Under competitive competitions, why can a market price not be higher or lower than the price established by the free market forces of demand and supply?
Under which conditions or in which situations are in-depth interviews more appropriate, and under which conditions...
Under which conditions or in which situations are in-depth interviews more appropriate, and under which conditions or in which situations are focus groups more appropriate? Please support your answer with additional sources/references and, if possible, provide a short example.
A) what assumptions characterize an ideal gas? B)under what conditions are these assumptions most appropriate? C)...
A) what assumptions characterize an ideal gas? B)under what conditions are these assumptions most appropriate? C) what equation describes the thermodynamic state of an ideal gas? D) if the assumptions os A become inappropriate how do we modify the equation of state to be more realistic? E) explain from a kinectic theory of particles making up the gas, why doubling the number of moles of a gas doubles the pressure at constant volume and temperature. F) explain from a kinectic...
s the contribution margin ratio of a grocery store likely to be higher or lower than...
s the contribution margin ratio of a grocery store likely to be higher or lower than that of a plastics manufacturer? Explain the difference in cost structure between a grocery store and a plastics manufacturer. How does the cost structure difference impact operating risk?
Will the results in (a) be higher or lower than the results under FIFO and LIFO?...
Will the results in (a) be higher or lower than the results under FIFO and LIFO? Whispering Winds Corp. uses the periodic inventory system and reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 300 $4 $ 1,200 12 Purchase 600 9 5,400 23 Purchase 450 10 4,500 30 Inventory 150 Part 1 Calculate Weighted Average Unit Cost. (Round answer to 2 decimal places, e.g. 15.25.) Weighted Average Unit Cost $enter Weighted Average...
What statistical procedure is most appropriate for the following scenario? Independent variable: Mediterranean diet versus regular...
What statistical procedure is most appropriate for the following scenario? Independent variable: Mediterranean diet versus regular (no special) diet; dependent variable: total cholesterol; covariate: body mass index at baseline.
The government set a maximum price for bread which is lower than the price that was...
The government set a maximum price for bread which is lower than the price that was set in the bread market before the government intervened. a. Show that in this situation the bakers will not be willing to sell the entire quantity the consumers would like to buy. b. In your opinion what will happen if the government shall not take any additional steps to support its policy and will only voicing the demand of the maximum price?
Geometric Optics A: Single Convex Lens Under what conditions is the magnification less than one, greater...
Geometric Optics A: Single Convex Lens Under what conditions is the magnification less than one, greater than one? What is the image distance when the object distance is twice the focal length? What is the magnification? Using the thin lens formula, explain why 1/(vertical intercept) is (or should be) the focal length of the lens? B: Lens Combination Is the final image inverted or upright? What happens to the virtual image as you move the eyepiece further from and closer...
Is the price of chicken lower than the price of beef because beef is preferred over...
Is the price of chicken lower than the price of beef because beef is preferred over chicken (the demand factor), or because it is cheaper to produce chicken (the supply factor)? Is the cost of producing chicken lower than the cost of producing been because chicken is considered an inferior good?
a. under what conditions would it be appropriate to use a process costing system b. in...
a. under what conditions would it be appropriate to use a process costing system b. in what ways are job order and process costing similar c. Why is accumulation simpler in a process costing than it is in a job order costing system.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT