Process used to identify the financial data that changes under alternative courses of action Costs that differ across alternatives The potential benefit lost when one course of action is chosen rather than an atternative course of action A cost incurred in the past that cannot be changed or avoided by any present or future decision Opoints It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally selis for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the etect on net income? $6,000 increase $6,000 decrease $9,000 decrease $45,000 increase If Ortiz buys the part from an outside supplief, $40,000 of the foxed overhead is avoidable If the outside supplier offers a unit price of $68, net income will increase (decrease) by $(10,000) $125,000 $(50,000) 585,000 5 Opoints NF Toy Company is unsure of whether to sell its product assembled of unassembled. The unit cost of the unassembled product is $24 and NF Toy would sing $52. The cost to assemble the product is estimated at $17 per unit and the company believes the market would support a price of $68 on the assembled ui What decision should NF Toy make? Sell before assembly, the company will be better off by $1 per unit Sell before assembly, the company will be better off by $16 per unit Process further, the company will be better off by $23 per unit Proces5 further, the company will be better off by $11 per unit 0 points Keith inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the foxed costs are direct, and the other 70% are allocated. Results of June follow. What will be the total net income (loss) if the Sour Cream line is eliminated? 2,500 15,000 12.500 17,500 Which of the following is NOT true about a budget: Promotes efficiency Primary method of communicating agreed-upon objectives throughout the organization Should always match actuals Helps communicate goals and provides a basis for evaluation 0 points Which of the following is NOT a primary benefit of budgeting: an early warning system used to punish or discipline management for not meeting objectives provides definite objectives for evaluating performance motivates personnel throughout the organization to meet planned objectives