1. (TCO 1) Evaluating customer reaction of the trade-off of giving u.pdf

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1. (SLO 3) Suppose that you leave a job that pays $40,000/year and use $10,000 of your savings that had been earning $500/year in interest in order to start your own business. In your business, you sell 450 units at $60/unit while paying $12,000 for capital cost and $12,000 for labor cost. Assume there are no other costs than those mentioned here. How much is economic profit? A) - $13,000 B) $3000 C) $26,500 D) - $37,500 E) - $47,500 . 2. Which of the following statements about the relationship between economic profits, normal profits and accounting profits is true? A) Accounting profits are always lower than economic profits. B) Accounting profits must equal economic profits (by definition). C) Accounting profits are always greater than normal profits. D) Accounting profits are equal to or greater than economic profits. Solution 1.C) $26,500 2.A) Accounting profits are always lower than economic profits..

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1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product
for a lower price would best fit which category of management decisions under activity-based
management? (Points : 5) Pricing and product-mix decisions
Cost reduction decisions
Design decisions
Discretionary decisions
$1,800.
$2,000.
$1,600.
$5,600.Question 2. 2. (TCO 1) Bristol Company produces a special spray nozzle. The
budgeted indirect total cost of inserting the spray nozzle is $200,000. The budgeted number of
nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this
activity? (Points : 5) $3.00
$2.50
$2.00
$3.50
Solution
1) Design decision
2) $2.50 (200000/80000)
3) property taxes paid on plant facilities.
4)
5) an ethical framework for decision making
6) y = 80,000 + 150X (100+15+35 = 150)
7) Account analysis method
8) Sunk cost
9) a manufacturing company produces multiple products and uses multiple manufacturing
facilities and/or machines.
10) None of the above
11) Joint cost
12) The extra operating income earned past the split-off point.

13) there are significant nonproduction costs.
14)
15) Both A and C are correct
16) opportunity cost = 25-10 = $15
17) economic viability and profitability of each division can be evaluated individually
18) the criterion often cited in government contracts.
19) the electric mixer division used $24,000,000 of 50000000 which is 48 % of issuace so 48 %
of 1500000 = $720000
20) the net present values of individual projects can be added to determine the effects of
accepting a combination of projects.

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"You can download this product from SlideTeam.net" Plan and control the budget of the business by using the Cost Management PowerPoint Presentation Slides. Develop marketing capabilities, advertising, sponsorship, etc. with the help of project cost management PPT slideshow. Represent the cost of foregone alternatives with the help of the opportunity cost table. Determine all business expenses pertaining to the creation of company products by taking the assistance of products costing PPT visuals. Utilize our budgeting PowerPoint graphics and discuss all applicable costs, such as equipment and parts, materials and supplies, labor, financing, fees and licensing, transportation, and acquisition costs. Identify activities in an organization and assign the cost of each activity to all products and services by taking the assistance of the activity-based management PowerPoint layouts. You can also evaluate profits using the professionally designed financial management PPT slide deck. Thus, control the cost of your business project efficiently and strengthen the position of your firm by downloading our visually attention-grabbing project cost management PPT Presentation. https://bit.ly/3pb67nZ

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Management Accounting Activity Based Costing vs Absorption Costing Table of Contents Budgeted Profit Statements 1 1.1 Absorption Costing 1 1.2 Activity Based Costing 3 1.3 Comments on the results 5 2.0 Discussion of the statement 6 References 9 0 2 1.0 Budgeted Profit Statements 1.1 Absorption Costing Traditional absorption costing involves the calculation of product cost, using direct and indirect variable costs and fixed and variable overheads, which are substituted over the complete production. Overhead cost substitution is based upon the process activity that drives the cost. Machine hours and assembly hours are two example activities that influence product development; overheads are allocated based upon the hours consumed in each department. The following table summarises the activity levels involved in the production process: Product Units Machine (Hours) Assembly (Hours) Setups Orders Suppliers XYI 50,000 100,000 350,000 120 8,000 3,000 YZT 40,000 200,000 120,000 200 8,000 4,000 ABW 30,000 120,000 60,000 200 16,000 4,200 Total 120,000 420,000 530,000 520 32,000 11,200 When the cost is allocated to each product, finding each product’s contribution towards overhead provides a clearer picture. The following table summarises the total contributions of the three products. Total Contribution Products Selling Price (£) (1) Cost Price (£) (2) Contribution (£) (3)= (1)-(2) Units (4) Total Contribution (5)= (3)x(4) XYI 45 32 13 50,000 650,000 YZT 95 84 11 40,000 440,000 ABW 73 65 8 30,000 240,000 The absorption rate on which the overhead cost is allocated to the products is also important in making the profit and loss statement. Since this involves two significant activities, the overhead is allocated over these two cost drivers. · O/H Absorption rate (Machine Hours) Overheads / machine hours = £504,000 / 420,000 = £1.20/hour · O/H Absorption rate (Assembly Hours) Overheads / assembly hours = £437,000 / 530,000 = £0.8245/hour Based upon absorption rates, the following table summarises the division of overhead costs over the three products. Machine Hours Assembly Hours Products Hours (1) Rate (2) Overheads (3)=(1)*(2) Hours (4) Rate (5) Overheads (6)=(4)*(5) Total O/H (7)=(3)+(6) XYI 100,000 1.20 120,000 350,000 0.8245 288,575 408,575 YZT 200,000 1.20 240,000 120,000 0.8245 98,940 298,940 ABW 120,000 1.20 144,000 60,000 0.8245 49,470 169,470 504,000 436,985 940,985 · Statement of Profit / (Loss) Using Absorption Costing Method Revenue XYI YZT ABW (1) Units 50,000 units 40,000 units 30,000 units (£) (£) (£) (£) (2) Sale Price 45 95 73 (3) Cost Price 32 84 65 (4) Contribution (2) – (3) 13 11 8 Total Contribution (4) * (1) 650,000 440,000 240,000 1,330,000 Overheads * (408,575) (298,940) (169,470) (940,985) Net Profit 241,425 101,060 46,530 389,015 1.2 Activity Based Costing The focus of activity based costing is upon departmentalizing overheads cost; this cost can be attributed to th ...

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1. Hair stylists now serve both men and women. Management Looks magazine did a survey of mid-management people to see if there is a difference in the proportion of women and men going to a hair stylist regularly. A random sample of 50 mid-management men showed that 31 went to stylists regularly while a random sample of 36 mid-management women showed that 20 went to stylists regularly. Test the claim that there is no difference in the proportion of mid-management men and women who go to hair stylists regularly. (Use a 0.05 level of significance) Solution proportion of men = 31/50 proportion of women = 20/36 phat = (31 + 20)/(50 + 36) = 51/86 test statistic = (31/50 - 20/36)/(square root of 51/86*35/86)*square root of(1/50 + 1/36) = .6001 p value = .2742 Since p value is greater than .05, you would fail to reject the null hypothesis. There is not enough evidence to support the conclusion that there is a difference..

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1- Which of the following is not true about attitudes? There are three components - cognitive, affective and behavioral They are evaluative judgments about a particular situation They predispose a person to act in a certain way They are less stable than values Managers can see and react to employee attitudes 2- Which of the following is most difficult to affect externally? Behaviors Attitudes Values Opinions All are equally difficult to affect externally 3- Which of the following is not a psychological impediment to operating in a global environment?? Ethnocentricity Parochialism Self-imposed issues such as \"human rights\" All of the above are impediments to global operations None of the above is correct Solution 1. Correct Answer: Managers can see and react to employee attitudes Explanation Attitude is shown in a particular given situation and as such it can only be assessed with the past experiences about a person. role of a manager is to identify the traits of employees and motivate and manage them accordingly so that employees will contribute more towards achieving an organizational objective. Besides, other four options are correct about attitude. Kindly repost other unanswered questions to get their proper answer..

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