Use the following for information: Projected sales for Tony, Inc. for next year and beginning and ending inventory data are as follows: Sales = 20,000 units; Beginning inventory = 1,000 units; Desired ending inventory = 5,000 units. According to the production budget, how many units should be produced?Answers

16,000

20,000

24,000

21,000

Russell Corp. is considering the purchase of a new machine for $76,000. The machine would generate an annual cash flow of $23,214 for five years. At the end of five years, the machine would have no salvage value. What is the payback period in years for the machine approximated to two decimal points?Answers

3.00

9.48

3.27

4.00

_____________________ is most likely the measure of performance for a profit center.Answers

Price variance

Contribution margin

Return on investment

Efficiency measure

32)Return on investment may be calculated by multiplying asset turnover by which of the following items?Answers

Average collection period

Debt ratio

Margin

Fixed--charge coverage

33)What can be said if a division generates a positive residual income?Answers

Performance was above expectations.

Operating income exceeds the division's minimum return.

Profitability was greater than that of other divisions in the company.

Asset turnover was very high.

34)CHAPTER 10

How should accountants classify costs with regard to impact on decision making?Answers

Relevant, opportunity, and sunk

Variable, fixed, and mixed

Expired, unexpired, and period

Historical, replacement, and budgeted

35)Jago Co. has two products that use the same manufacturing facilities and cannot be subcontracted. Each product has sufficient orders to utilize the entire manufacturing capacity. For short--run profit maximization, which product should Jago manufacture?Answers

The product with the lower total manufacturing costs for the manufacturing capacity.

The product with the lower total variable manufacturing costs for the manufacturing capacity.

The product with the greater gross profit per hour of manufacturing capacity.

The product with the greater contribution margin per hour of manufacturing capacity.

36)The solution of the product mix problem with multiple constraints is considerably more complex and requires a technique known as ____________.Answers

Linear programming

Segment profitability analysis

Theory of constraints

Contribution margin analysis

37)In joint--product costing and analysis, which one of the following costs is relevant when deciding the point at which a product should be sold to maximize profits?Answers

Separable costs after the split--off point

Joint costs to the split--off point

Sales salaries for the period when the units were produced

Purchase costs of the materials required for the joint products