1-

The following information is given for Aces Corp. for the most recent year.

Sales $2,000,000

Net Operating Income $250,000

Operating Assets $500,000

Calculate the margin for Aces Corp. for the most recent year.

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2.

Which parts of the delivery cycle are considered to be value-added time?

		Process time, inspection time, move time, and queue time are all considered value-added time.
		Process time, inspection time, move time, wait time, and queue time are all considered value-added time.
		Process time and inspection time are considered value-added time.
		Only process time is considered value-added time.

3.

XYZ Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded per order:

Inspection time: 0.3 days

Wait time: 16 days

Queue time: 4 days

Move time: 0.2 days

Process time: 2.5 days

Compute the delivery cycle time.

	a.	23 days
	b.	18.5 days
	c.	3 days
	d.	7 days

4.

When making a decision, a(n) _______________ cost can be eliminated by choosing one alternative over another.

	a.	differential
	b.	opportunity
	c.	avoidable
	d.	sunk

5-

Metals, Inc. produces several products from processing 1 pound of gold. Material and processing costs total $15,000 per pound, 25% of which is allocated to product R25. 60 units of product R25 are produced from each pound of gold. The units can either be sold at the split-off point for $500 each or processed further at a total cost of $20,000 and then sold for $800 each.

Should product R25 be processed further or sold at the split-off point?

	a.	Yes, it should be processed further.
	b.	None of the given options are correct.
	c.	No, it should not be processed further.
	d.	It is equally profitable to sell it at the split-off point or to process it further.