Each multiple choice question is worth 3 points for a total of 36 points. 1. Pasha Company produced 50 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Pasha can sell them as is for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. Which of the following is not relevant to the sell-or-rework decision? a. $30 manufacturing cost b. $20 selling price of defective units c. $15 for rework d. $50 regular selling price e. all are relevant 2. Pash company is considering a special order for 1,000 units to be priced at $8.90 (the normal price would be $11.50). The order would require specialized materials costing $4.00 per unit. Direct labor and variable factory overhead would cost $2.15 per unit. Fixed factory overhead is $1.20 per unit. However, the company has excess capacity and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing $1,300. Which of the following is relevant to the special order? a. $11.50 normal selling price b. $1.20 fixed factory overhead per unit c. $7.35 spent on donuts and coffee d. $8.90 selling price per unit of special order e. none of these 3. A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what kind of decision? a. relevant b. make-or-buy c. sell-or-process-further d. special order e. keep-or-drop 4. When managers are considering the optimal product mix, they are most concerned with a. maximizing revenue. b. minimizing cost. c. maximizing profit. d. minimizing selling and administrative expense. e. balancing productive capacity. 5. Limited resources and limited demand for a product are generally referred to as a. resources. b. problems. c. constraints. d. optima. e. contribution factors. 6. Raffles Company a parent company of Pahsa routinely bids on construction jobs. Raffles first determines the budgeted product cost of the job and then applies a markup of 50%. If a bid of $15,000 is submitted for a new job, which of the following is true? a. budgeted product cost is $15,000 b. $5,000 is pure profit c. all costs pertaining to the job total $15,000 d. $5,000 includes fixed overhead, selling and administrative expense, and profit e. $5,000 includes selling and administrative expense, and profit 7. The inventory cost that can include processing costs, cost of insurance for shipping, and unloading is called a. ordering cost. b. carrying cost. c. stockout cost. d. setup cost. e. storing cost. 8. In general terms, a sound capital investment will a. earn back its original capital outlay. b. earn a return greater than existing capital investments. c. earn back its original capital outlay and provide a reasonable return on the original investment. d. earn back its original capital outlay by the midpoint of its useful life. e. do none of these. I will rate LIFE SAVER ONLY FOR ALL ANSWERED CORRECT QUESTIONS, Thank you for all your help.....LYNNE