Financial Management

Please show work: 11. The use of unit-based cost drivers has the following consequences: (a) simple products are undercosted (b) complex products are overcosted (c) (a) and (b) (d) none of the above. Please provide the correct answer.

Financial Management: selling and administrative costs

12. Which of the following statements most accurately explains why selling and administrative costs have been largely ignored under conventional costing systems? (a) Selling and administrative costs are very hard to quantify except at exorbitant cost of measurement. (b) Selling and administrative have been negligible in amount relative to total costs. (c) Selling and administrative costs are not inventoriable under GAAP. (d) none of the above

Financial Management

13. Which of the following is least likely to be a barrier in ABC implementation? (a) computer hardware and software problems (b) individual resistance to change (c) organizational resistance to change (d) lack of senior management commitment

Financial Management

14. Tom Terry manufactures an intricately detailed plastic and metal toy airplane. The following unit cost data pertain to the unit cost of an airplane: Direct materials $ 5.00 Direct labor 12.00 Manufacturing overhead (50% fixed) 10.00 Total manufacturing costs $27.00 Please show work: Assume that the airplane can be purchased from an outside supplier. What is the relevant unit cost for this make-or-buy decision? a. $5 b. $17 c. $27 d. $22 e. none of the above. Please provide the correct answer.

Financial Management

Please show work: 15. Payne and McGough Corporation produces 5,000 units of part WOW internally for use in the assembly of its finished products. The unit cost of part WOW is based on a production level of 5,000 units per week as follows: Variable Cost $20.00 Fixed Cost 10.00 Total Cost/unit $30.00 Part WOW also can be purchased from an outside supplier at $24 per unit. If part WOW is purchased from the supplier, 40% of the fixed costs can be eliminated. If the company purchases part WOW from the outside supplier, its operating income will: a. increase by $30,000 b. remain the same c. decrease by $30,000 d. increase by $20,000 e. none of t... click for more