46. The kind of cost that can be ignored in short-term decision making is a(n): O A. Differential cost B. Incremental cost C. Sunk cost O D. Relevant cost47. Which of the following statements is false? * 1 point 47. Dawn Incorporated manufactures Zulueta, a high-end beauty product. The cost per unit for 10,000 units for Zulugta are as follows: Direct materials P5 Direct labor 10 Variable overhead 7 Fixed overhead 10 Total P32 Richard Company has offered to sell Dawn 10,000 units of Zulueta for P30 per unit. If Dawn accepts Richard's offer, the released facilities could be used to save P45,000 in relevant costs in the manufacture another product. In addition, P7 per unit of fixed overhead applied to Zulueta would be totally eliminated. What alternative is more desirable and by whata amount is it more desirable? O A. Manufacture, P10,000 O B. Manufacture, P15,000 C. Buy, P35,000 D. Buy, P65,00048. Assuming that there are 20 hours available in each machine, which * 1 point machine is the bottleneck? Lan Xu Company has three products; X, Y and Z. Three machines are used to produce the products. The contribution margins, sales demands, and time on each machine (in minutes) are as follows: Demand CM Time on M1 Time on M2 Time on M3 A 100 P30 5 mins 7.5 mins 6 mins B 80 P20 5 mins 2.5 mins 4 mins C 60 P30 2.5 mins 5 mins 2.5 mins O A. Machine 1 B. Machine 2 C. Machine 3 D. No bottleneck operation49. The information contained in a cost of goods manufactured budget *1 1 point most directly relates to the O A. Materials used, direct labor, overhead applied, and ending work-in-process B. Materials used, direct labor, overhead applied, and work-in-process inventories O budgets O C. Materials used, direct labor, overhead applied, and work-in-process inventories, and finished goods inventories budgets O D. Materials used, direct labor, overhead applied, and finished goods inventories budgets50. The budgeted cost of the company's purchases for the month of * 1 point October would be The next items are based on the following information: Operational budgets are used for planning and controlling its business activities. Data regarding a company's sales for the last 6 months of the year and its projected collection patters are shown below: Forecasted sales July P775,000 August 750,000 September 825,000 October 800,000 November 850,000 December 900,000 Types of sales Cash sales 20% Credit sales 80% Collection Pattern by Credits Sales In the month of sale 40% In the first month following the sale 57% Uncollectible 3% The cost of merchandise averages 40% of its selling price. The company's policy is to maintain an inventory equal to 25% of the next month's forecasted sales. The inventory balance at cost is P80,000 as of June 30. A. P302,500 O B. P325,000 C. P307,500 D. P327,50051. The company's total cash receipts from sales on account that would * 1 point be budgeted for the month of September would be A. P632,200 O B. P771,000 O C. P606,000 D. P192,200 52. Income under absorption costing may differ from income under * 1 point variable costing. How is the difference calculated? O A. Number of units produced during the period times the fixed factory overhead rate per unit O B. Change in the quantity of units in inventory times the variable manufacturing cost per unit O C. Change in the quantity of units in inventory times the fixed factory overhead rate per unit O D. Number of units produced during the period times the variable manufacturing cost per unit53. What best accounts for profit difference between absorption costing and variable costing method? 0 A. Difference in fixed overhead incurred O B. Difference in variable costs incurred O C. Difference in sales revenue 0 D. Difference in inventory valuation 54. When sales are constant but production fluctuates, * O A. Net income will be erratic under variable costing O B. Absorption costing will always show a net loss 0 ID. Net income will be erratic under full costing O D. 1|ll'ariable costing will always show a positive net income 55. Which of the following statements is TRUE for a firm that uses * 'I point variable costing? O A. The cost of a unit product changes because of change in number of units manufactured O B. Profit will more or less be the same under absorption costing if the firm employs J IT system 0 C. An idle facility variation is calculated 0 D. Product costs include variable administrative costs 56. Budgeted level of activity used for year 1 * 1 point The next items are based on the following information: LiJian, Inc. extracted the following sales and cost information in the last two years: Year 1 Year 2 Beginning inventory 2,500 Production 18,500 22,300 Sales 20,000 21,500 Actual variable costs charged in profit or loss 79,000 90,700 Actual fixed costs 52,500 52,500 Unfavorable (favorable) controllable variance -7,500 3,125 Additional information follows: The selling price and standard unit costs for both years remained at P8.00 and P5.00, respectively The total fixed costs for both periods is the same as planned All commercial costs amounting to P21,500 and P17,700 for your 1 and year 2, respectively, are variable in nature A. 30,000 units O B. 35,318 units C. 16, 154 units O D. Cannot be determined57. Income under variable costing A B C D Year 1 28,500 25,875 28,500 25,875 Year 2 30,200 28,800 28,800 30,200 A. 28,500 30,200 B. 25,875 28,800 C. 28,500 28,500 D. 25,875 30,200 58. A project is defined as a * 1 point A. Temporary endeavor O B. Continuous endeavor C. Expensive endeavor D. Endless endeavor59. The critical path is the * 1 point O A. maximum amount of time an activity may be delayed without delaying the entire project O B. earliest starting time that an activity for a project can begin O C. pessimistic time estimate for an activity of a project O D. longest time path from the first event to the last event for a project 60. A decision maker is operating in an environment wherein all the facts * 1 point surrounding a decision are known exactly, & each alternative is associated only with one possible outcome. The environment is known as: A. Certainty B. Risk C. Uncertainty D. Conflict