Question
Role of Managerial Accounting -The primary role of managerial accounting is to: a. Provide information to current and potential investors of the company. b. Provide
- Role of Managerial Accounting-The primary role of managerial accounting is to:
a. Provide information to current and potential investors of the company.
b. Provide information to creditors as well as current and prospective investors.
c. Provide information to creditors, taxing authorities, and current and prospective investors.
d. Provide information to managers for planning, control and decision making.
- Cost-Volume-Profit Analysis- The Southern Company manufactures and sells private label PC's. The selling price for each unit is $800. Materials and parts cost $400 per unit direct labor $100 per unit. Fixed manufacturing overhead for the year is budgeted at $1,000,000. The company plans to produce 4,000 units in the upcoming year. How many PC's must Southern Company sell to break-even in the current year?
a. 1,250
b. 1,333
c. 2,500
d. 3,333
- Managerial Accounting Information in tactical decision making- Which of the following in not relevant when considering whether or not to drop a product?
a. The product contribution margin.
b. Qualitative factors.
c. Common fixed costs allocated to each product.
d. The potential impact on the demand for other existing products.
- Capital Budgeting- Southern Company is consider expanding its manufacturing facility to meet increasing customer demand. The investment is $100,000 with a useful life of ten years with no salvage value at the end of the ten years. The Company expects the investment will result in $20,000 of positive cash flow per year over the life of the investment. Southern requires at 10% rate of return to make the investment.
The Net Present Value of this investment is:
a. $0
b. $100,000
c. $14,091
d. $22,900
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