Essay on Acct 505 Week 8 Final Exam (Version 2)

1096 Words May 31st, 2015 5 Pages
ACCT 505 Week 8 Final Exam (Version 2)

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1. A good example of a common cost which normally could not be assigned to products on a segmented income statement except on an arbitrary basis would be:
2. Turnover is computed by dividing average operating assets into:
3. A segment of a business responsible for both revenues and expenses would be called:
4. All other things being equal, if a division's traceable fixed expenses increase:
5. In computing the margin in a ROI analysis, which of the following is used?
6. Net operating income is defined as:
7. Suppose a manager is to be measured by residual income. Which of
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Manor Company plans to discontinue a department that has a contribution margin of $24,000 and $48,000 in fixed costs. Of the fixed costs, $21,000 cannot be avoided. The effect of this discontinuance on Manor's overall net operating income would be a(an):
18. Manor Company plans to discontinue a department that has a contribution margin of $25,000 and $50,000 in fixed costs. Of the fixed costs, $21,000 cannot be eliminated. The effect on the profit of Manor Company of discontinuing this department would be:
19. Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is:
20. Pitkin Company produces a part used in the manufacture of one of its products. The unit product cost of the part is $33, computed as follows:
21. Cardinal Company needs 20,000 units of a certain part to use in one of its products. The following information is available:
22. Products A, B, and C are produced from a single raw material input. The raw material costs $90,000, from which 5,000 units of A, 10,000 units of B, and 15,000 units of C can be produced each period. Product A can be sold at the split-off point for $2 per unit, or it can be processed further at a cost of $12,500 and then sold for $5 per unit. Product A should be:
23. The sunk cost in this situation is:
24. How much of the unit product cost of $59.90 is relevant in the decision of whether to make or buy the

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