What is the estimated selling price of a product less any costs necessary to further process the product beyond the split-off point?
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What is the estimated selling price of a product less any costs necessary to further process the product beyond the split-off point?
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- Relevant Cost for non-routine decision making: Sell or Process Further How much is the incremental profit/loss for product A, B, C15.what is the estimated selling price of a product less any cost necessary to further process the products beyond the split of point?How can the expected sales for a product group be converted into expected unit sales ?
- In a product mix decision, which is the mostimportant factor to consider in order to try tomaximise profit? contribution per unit of the productproduct unit selling pricevariable cost per unit of the productcontribution per unit of a scarce resource used to make the productWhat is the decision rule for selling a product as is or processing it further?How would you define fixed and variable product costs? How are these costs used in determining the contribution margin of different products manufactured and sold? What relationship do you see between these cost behaviors as they relate to the volume of sales/production and profitability?
- When deciding whether to sell as is or process a product further, managers should ignore which of the following? The costs of processing the product thus far The cost of processing further The revenue if the product is sold as-is The revenue if the product is processed furtherWhich of the following best describes an "opportunity cost"? Expected future costs that differ among alternatives None of the items in this list of answers. Costs that were incurred in the past and cannot be changed The distribution of all products to be soldWhen deciding whether to sell as is or process a product further, managers should ignore which of the following? a. The costs of processing the product thus far b. The cost of processing further c. The revenue if the product is sold as is d. The revenue if the product is processed further
- What is a product cost? What is a period cost? What is the difference and why is it important to separate these costs in financial reporting and decision-making? What is a variable cost? What is a fixed cost? Why is the difference important to making decisions?The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysisWhich of the following is not an application of cost-volume-profit analysis? Setting prices for products and services. Performing strategic “what-if” analyses. Deciding whether to cut a product line. Determining the short-term cost or profit implications of many decisions. Deciding whether to make or buy a given product or service.
