Question
30. Which type of manager would be allowed to decide whether or not new manufacturing equipment should be purchased? a. Production manager b. Cost center
30. Which type of manager would be allowed to decide whether or not new manufacturing equipment should be purchased?
a. Production manager
b. Cost center manager
c. Profit center manager
d. Investment center manager
15. In the decision-making process, which of the following tactical decision making situations would be best addressed by managers using a segmented income statement rather than a contribution margin format income statement?
a. | The decision on whether or not a one-time special order for a customer should be accepted. |
b. | The calculation of the break-even point for the upcoming month. |
c. | The decision on whether or not an entire product line should be discontinued. |
d. | The decision on whether or not to process a product further or sell "as is". |
12. Under direct costing, which of the following are costs that can be inventoried (i.e., product costs)?
a. | variable selling and administrative expense |
b. | variable manufacturing overhead |
c. | fixed manufacturing overhead |
d. | fixed selling and administrative expense |
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