DUS 211 16. In a make-or-buy decision, relevant costs includes a. unavoidable fi

Question

DUS 211 16. In a make-or-buy decision, relevant costs includes a. unavoidable fised costs. b. avoidable fixed costs c. fixed factory overhead costs applied to products. 17. Managerial performance can be measured in many different ways including return on investment (O and residual income. A good reason for using residual Income instead of ROL is a. Residual income can be computed without having to measure operating assets. b. Managers are more likely to accept projects that are beneticial to the company. ROI does not take into account both turnover and margin. A minimum rate of return does not have to be specified when residual income c. d. 18. In making a differential analysis decision such as whether or not to drop an unprofitable segment, which of the following factors should be ignored? a. Avoidable costs. b. Differential or incremental costs c. Di d. Future fferential or incremental benefits. costs and benefits that do not differ between alternatives. 19. One of the performance measures in the balanced scorecard prepared by Bothell Industrial Products, Inc is percentage of stoff who have completed a customer relationship management troining course. This performance measure would fall within which balance scorecard perspective? a. Learning and growth. b. Internal business processes. c. Customer d. Financial. i pound of ingredients and 0.1 hours of direct labor. Price standards are ingredients and $9.00 per hour of direct labor $2.50 per direct labor hour. What is the standard cost of one 20. Kidd Valley estimates that the manufacturing cost elements to produce one Club Burger are at a standard rate of overbead is Club Burger? a. $2.00. b $2.25. S c. $3.35. S tarded cost2.25

Explanation / Answer

Q16. Answer is b. Avoidable fixed cost Q17. Answer is b. Managers are more likely to accept which are more beneficial to company. Q18. Answer is d. Future cost and benefit that donot differ between alternatives. Q19. Answer is c. Customer. Q20. Answer is b. $ 2.25 Explanation: Standard cost per unit: material (0.50 pound @ 2.20) 1.1 Labour (0.10 hour @ 9.00) 0.9 OH (0.10 hour @ 2.50) 0.25 Std cost per unit: 2.25

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