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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Choose from the dropdown given whether the associated cost or benefit is relevant/irrelevant to the related decision.
Relevant/
Decision
Cost or Benefit
Irrelevant
$300 repair bill to fix brakes.
1
Decision: Should you take the bus or drive your car to school for the semester?
Unavoidable fixed overhead.
Decision: Eliminate an unprofitable segment.
2.
3.
Decision: Make or buy a component used in manufacturing a product.
Selling price of the final product.
Variable overhead
4.
Decision: Accept a special order.
The cost of prod ucing an
unfinished and unassembled table
Decision: Sell unassembled and unfinished furniture or sell finished assembled furniture.
5
Decision: XYZ Tire Company is considering dropping one of its 10 models of tires
6
Common fixed costs.
Decision: ABC Golf Co. produces custom golf clubs and is considering purchasing the putter from a manufacturer
7.
Direct labor
of custom putters
Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa,
Florida, for an executive training session. The airline has excess capacity on the scheduled flight date.
Cost of flight crew.
8
Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa,
9.
In-flight meals.
Florida, for an executive training session. The airline has excess capacity on the scheduled flight date.
Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa,
10
Florida, for an executive training session. The airline does not have excess capacity on the scheduled flight date
Discounted ticket price
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- ngageNOWv2 | Online teachin x takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator%=&inprogress=false eBook Show Me How Print Item Flexible Budget for Selling and Administrative Expenses for a Service Company Daybreak Technologies Inc. uses flexible budgets that are based on the following data: Sales commissions 8% of sales Advertising expense 15% of sales Miscellaneous administrative expense $1,300 per month plus 3% of sales Office salaries expense $12,000 per month Customer support expenses $1,800 plus 4% sales Research and development expense $4,000 per month Prepare a flexible selling and administrative expenses budget for April for sales volumes of $80,000, $100,000, and $120,00 Daybreak Technologies Inc. Flexible Selling and Administrative Expenses Budget For the Month Ending April 30 Total sales $80,000 $100,000 $120,000 Variable cost: Sales commissions Advertising expense Miscellaneous administrative expense Customer support expenses Total variable cost…arrow_forwardPlease do not give solution in image format thankuarrow_forwardplease dont give image based answers thank youarrow_forward
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