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Can you please assist with the attached? I will need back as soon as possible. Thanks! Question 2 The Waldo Co. is deciding whether to

Can you please assist with the attached? I will need back as soon as possible. Thanks!

image text in transcribed Question 2 The Waldo Co. is deciding whether to keep using an old machine or sell the old machine and rent a new one. The number of workers required to run and maintain the replacement machine are expected to be the same as for the old machine, but the new machine uses much less electricity. Which of the following costs are likely to be relevant to that decision? Waldo faces a tax rate of 0.0% (is tax exempt). a. Cost of electricity b. Wages for the workers c. Depreciation expense for the old machine d. All of the above Question 3 By computing and reviewing material and labor variances in a standard cost system, a company can a. Immediately know what went wrong in the production process b. Manage by exception c. Better assess the needs of their customers d. None of the above Question 4 When computing the balance in ending inventory for a manufacturing company, which distinction below is most important? a. Variable versus fixed b. Opportunity versus sunk c. Product versus period d. Direct versus indirect e. A&C Question 5 on next page..... Question 5 An airline used a regression to predict the cost of beverages on its flights. For each flight, the airline collected the number of miles times the number of passengers (a.k.a., passenger miles) and the cost of beverages delivered. The data included flights with 40 to 100 passengers that flew routes ranging from 600 to 2500 miles in length. The regression using passenger miles to explain beverage cost has a slope of 0.005, an intercept of $60, and an R2 of 80%. What is the expected beverage cost on a 1,000 mile flight carrying 50 passengers? a. $60 b. $250 c. $310 d. $800 e. None of the above Question 6 Pick the best answer: The balanced scorecard ... a. is a substitute for transfer pricing. b. is a tool to enhance delegated decision making. c. is most appropriate for dynamic environments where corporate strategy changes frequently. d. focuses attention on leading indicators of profitability. e. B&C f. B&D Question 7 You have been asked to compute a breakeven point for your company for next year. Which of the following will cause errors in traditional CVP computations? a. Fixed cost behaves in step-function manner b. Variable costs increase linearly as volume increases c. Inventory levels are budgeted to increase significantly next year d. All of the above e. A&C Question 8 Mr. Chad is trying to decide how to structure Division X in the Holbrook Co. He is torn between designating Division X a profit center or a cost center. Which factor below is most important in deciding between these two alternatives? a. Whether Division X's product is used exclusively by other divisions within Holbrook versus sold to external customers b. Whether the manager of Division X can decide to increase or decrease the capacity of the manufacturing plant. c. Whether the manager of Division X can decide what inputs to use and what suppliers to buy from. d. All of the above Question 9 The Garnet Division of the X Co. is organized as a profit center. It produces bearings that it sells to outside customers. The Black Division has begun using bearings in its production process. Black asked the CEO to force Garnet to ship some of the bearings to Black. The CEO prefers decentralized decision making, and has asked you to find a solution. For your information, the variable production costs in Garnet equal $1.25 per bearing, fixed production costs are applied at a rate of $.75 per bearing, and outside customers pay $5 per bearing. Garnet has excess capacity a. Garnet should always ship bearings to Black b. Garnet should never ship bearings to Black c. Garnet should ship if Black is willing to pay Garnet $1.25 for each bearing shipped d. Garnet should ship if Black is willing to pay Garnet $2.00 for each bearing shipped e. Garnet should ship if Black is willing to pay Garnet $3.75 for each bearing shipped f. Garnet should ship if Black is willing to pay Garnet $5.00 for each bearing shipped Question 10 Refer to the information from the Garnet Division above. What is your solution if Garnet does not have excess capacity? a. Garnet should always ship bearings to Black b. Garnet should never ship bearings to Black c. Garnet should ship if Black is willing to pay Garnet $1.25 for each bearing shipped d. Garnet should ship if Black is willing to pay Garnet $2.00 for each bearing shipped e. Garnet should ship if Black is willing to pay Garnet $3.75 for each bearing shipped f. Garnet should ship if Black is willing to pay Garnet $5.00 for each bearing shipped

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