Page 1: Which of the following costs is least likely to be relevant in deciding whether to accept a special order? 1 3 2 a) Variable direct material costs 4 5 6 b) Unavoidable fixed overhead 7 8 9 Oc) Variable direct labor costs d) Selling price 10 11 12 13 14 15 Question 12 (Mandatory) (5 points) In deciding whether to drop its electronics product line, a company's manager should ignore 16 17 18 A) the amount of unavoidable fixed costs 19 20 21 B) the variable and fixed costs it could save by dropping the product line C) the revenues it would lose from dropping the product line D) the effect of dropping the electronics product line on the sales of its other MacBook Air Page 1: Which of the following is irrelevant when deciding to upgrade a company's heating and air conditioning system? 1 2 3 > a) the productivity of the old equipment compared to that of the new equipment 5 b) the safety of the new equipment compared to the old equipment 7 8 9 c) the purchase price of the old equipment compared to the purchase price of the new equipment 10 11 12 d) the energy efficiency of the old equipment versus the energy efficiency of the new equipment 13 14 15 16 17 18 19 20 21 Question 14 (Mandatory) (5 points) In a make or buy decision, the costs involved in buying will include: a) The charge from the vendor, plus the depreciation of any equipment you were unable to sell when making the change from making to buying. O) All of your manufacturing overhead, since it did not change when you decided to buy c) The charge from the vendor for the product. MacBook Air Page 1: Chapman Products has a favorable materials quantity variance. Which of the following would be the most likely reason for this variance? 3 2 a) The company under budgeted the quantity of material to be used for each unit. 4 5 6 b) The company's employees were less trained than expected, 7 8 9 The company's machines were better maintained resulting in lower wastage of materials 10 11 12 d) The company purchased material at a price for less than what was expected. 13 15 16 18 Question 4(5 points) A material variance is large at ABC Company and they are concerned. They have called you in to evaluate the problem. How would you proceed? 19 20 21 a) Keep using cheap materials. b) In order to find out who is to blame for the problem. Talk to each person involved privately so they can tell you what is going on MacBook Air 30 - doo 4 56 FZ F # % 5 & 7 2 3 4 6 Page 1: 1 2 a) Keep using cheap materials. Ob) in order to find out who is to blame for the problem. Talk to each person involved privately so they can tell you what is going on 5 6 Discuss the potential reasons for the variance with those who may be involved, such as the purchasing department, production and maintenance Compile the information and offer potential solutions 7 8 9 d) Buy better quality raw materials to lower waste. 10 11 12 13 15 Question 5 (5 points) If your actual unit cost is less than your standard unit cost for raw materials, then your price variance will be: 17 18 Either favorable or unfavorable. 19 20 21 b) Unfavorable c) We don't have enough information d) Favorable MacBook Air DOO BO 4 FS FT * # 3 % 5 & 7 0 8 9 6 4 2
