Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour

Question

Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified? (Points : 3)       Fixed cost within relevant range
      Variable
      Mixed
      Variable cost within relevant range

Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points : 3)      

Quantitative analysis
      Account analysis
      Conference
      Industrial engineering

Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available? (Points : 3)      

Yes, since operating profits will most likely increase.
      No, since only the employees will benefit.
      No, the company will only break even.
      Yes, good customer relations are essential.

Explanation / Answer

1) Mixed

2) Industrial engineering

3) Yes, since operating profits will most likely increase.Since the $60 absorption cost per unit is most likely not all variable costs and since the entire $16 per unit of marketing costs may not be incurred, operating profits will most likely increase

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