ACCT 212 Learnsmart Assignment 10 Liberty University Solution

The costing method defined as expected selling price minus desired profit is called ___ costing.

A(n) ____ expense is the amount a company would not incur if a segment is eliminated.

Under the cost-plus pricing method, the formula determined selling price unit is:

A company produces two products. Product A sells for $25, has variable costs of $15, and requires 2 machine hours to produce. Product B sells for $35, has variable costs of $20, requires 5 machine hours to produce. 40,000 machine hours are available. The company can sell all it can make of either product. Which statement is true?

A(n) ________ cost requires a future outlay of cash and is relevant for current and future decision making.

A(n) ________ cost arises from a past decision, cannot be avoided or changed, and is irrelevant to future decisions.

A student is deciding whether to take an additional class or work extra hours. Which amounts are relevant to this decisions?

An _____ cost is the potential benefit lost by taking a specific action when two or more alternative choices are available.

A company produces two products. Product A sells for $25, has variable costs of $15, and requires 2 machine hours to produce. Product B sells for $35, has variable costs of $20, and requires 2 machine hours to produce. 40,000 machine hours are available. The company can sell all it can make of either product. Which statement is true?

A company produces two products. Product A sells for $25, has variable costs of $15, requires 2 machine hours to produce, and the market is limited to 8,000 units. Product B sells for $35, has variable costs of $20, requires 5 machine hours to produce, and the market is limited to 6,000 units. 40,000 machine hours are available. Which statement is true?

Relevant ___ refer to the additional or incremental revenues generated by selecting a particular course of action over another.

When considering the elimination of a segment, management should look at more than the segment’s performance report.

When demand is unlimited and products use different inputs, the company should produce the product with the:

A manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units sell for $7,000. Alternatively, the company can process further to produce a refined product that will sell for $10,000. The additional processing will cost $4,000. The company should:

When making additional business decisions, management should consider: (Check all that apply.)

When making scrap or rework decisions, management should consider: (Check all that apply.)

costs, also called differential costs, are the additional costs incurred if a company pursues a certain course of action.

A company purchased manufacturing equipment 5 years ago for $50,000. Accumulated depreciation is currently $45,000 and the remaining useful life is 3 years. The equipment incurs annual operating costs of $30,000. The company is considering replacing the equipment. The new equipment will cost $75,000, have a useful life of 3 years, and is more efficient and, therefore, only costs $10,000 to operate each year. The vendor is willing to accept the old equipment with a trade-in allowance of $10,000. The company should: