Question 52 (2 points)

For the month of July, the manufacturing Company "X" had zero units in beginning inventory of any kind, and started 1,200 units of which... 700 good units were completed and shipped out; 100 units were in WIP at the end of the month. $100,000 was spent on materials during the month (all incurred at the beginning of the manufacturing process). "Normal spoilage" is budgeted at 30% of the completed & shipped out good units. Inspections occur at the end of the

manufacturing process.

For the month of July "spoilage" related material costs for the company totaled

$33,333

$15,833

$17,500

$15,250

Question 56 (1 point)

For companies operating plants in different tax jurisdictions where Transfer Prices are in play, your instructor argued

Transfer Pricing decisions are best made by head office personnel as they have the "accounting/financial analysis/tax" expertise and are unbiased when it comes to making the best decision on behalf of the entire company

Transfer Pricing decisions are best made by operating plant managers as they have the "local market expertise" to make the best decision on behalf of the entire company

Transfer Pricing decisions are best made by operating plant managers as they have the "inhouse expertise" to make the best decision on behalf of the entire company

Question 54 (1 point)

Life-cycle pricing strategies recognize BOTH "unit costs" and "selling prices" can change in either direction, over the life cycle of a product.

True

False

Question 55 (1 point)

Fill in the Blank.............. The operating income of each product line is used as a basis for assigning R&D department costs to the product lines." This is an example of the cost-allocation criteria

cause and effect

benefits received

ability to bear

fairness or equity

Question 57 (1 point)

The goal of "Supply-Chain Inventory Cost Management" strategy is to

ultimately reduce inventory "ordering costs" throughout the entire supply chain

ultimately reduce inventory related costs throughout the entire supply chain

ultimately reduce inventory related costs by retailers

ultimately reduce inventory "carrying costs" throughout the entire supply chain