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

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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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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