25.Which of the following works backward from the desired price to find the allowable cost? a. Step costing b. Mixed costing c. Target costing d. Differential costing e. Overall costing

26.

Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units:

Direct materials	$5
Direct labor	10
Variable overhead	7
Fixed overhead	9

The company has the capacity to produce 50,000 units. The product regularly sells for $50. A wholesaler has offered to pay $43 per unit for 3,000 units. If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a:

a.$30,000 increase.

b.$45,000 decrease.

c.$64,000 increase.

d.$21,000 decrease.

27.

If actual sales equal break-even sales

a.the margin of safety is positive.

b.the margin of safety equals zero.

c.it is impossible to say anything about the margin of safety.

d.the margin of safety is negative or positive.

e.the margin of safety is negative.

28.

Which of the following decisions involve a choice between internal and external production?

a.Repurchase order

b.Make-or-buy

c.Keep-or-drop

d.Special-order

e.Sell-or-process-further

29.

A factory produces 130,000 televisions per quarter. A total of 9,000 production hours are used by the factory per quarter. Calculate the cycle time in minutes. (Note: Round answer to two decimal places.)

a.3.92 minutes

b.3.75 minutes

c.4.15 minutes

d.3.83 minutes

30.

A(n) ____ ratio measures the proportion of an activity consumed by a product.

a.production

b.consumption

c.quality

d.usage

e.efficiency

31.

If variable costs per unit decrease, sales volume at the break-even point will

a.double.

b.stay constant.

c.increase.

d.decrease.