Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 10MC
Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment?
A. comparing contribution margins and fixed costs
B. comparing contribution margins and variable costs
C. comparing gross margin and variable costs
D. comparing total contribution margin under each alternative
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Which of the following is the format of the income statement that is MOST useful in decision-making?
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Chapter 10 Solutions
Principles of Accounting Volume 2
Ch. 10 - ______ are the costs associated with not choosing...Ch. 10 - Which type of incurred costs are not relevant in...Ch. 10 - The managerial decision-making process has which...Ch. 10 - Which of the following is not one of the five...Ch. 10 - Which of the following is sometimes referred to as...Ch. 10 - Jansen Crafters has the capacity to produce 50,000...Ch. 10 - ______ is the act of using another company to...Ch. 10 - Which of the following is a disadvantage of...Ch. 10 - Which of the following is not a qualitative...Ch. 10 - Which of the following is one of the two...
Ch. 10 - When should a segment be dropped? A. only when the...Ch. 10 - Youngstown Construction plans to discontinue its...Ch. 10 - Mallorys Video Supply has changed its focus...Ch. 10 - A company produces two products. E and F in...Ch. 10 - When operating in a constrained environment, which...Ch. 10 - Your roommate at school believes that all fixed...Ch. 10 - Explain how to differentiate short-term decisions...Ch. 10 - Felipes Restaurant and Pie Shop needs help...Ch. 10 - What factors must any company consider before...Ch. 10 - What are some of the qualitative issues that a...Ch. 10 - In The Trouble with Outsourcing, a Schumpeter...Ch. 10 - Many outsourced jobs have resulted in offshoring...Ch. 10 - What type of qualitative issues should management...Ch. 10 - In the decision by a grocery company that is...Ch. 10 - What is of key importance for a company whose...Ch. 10 - What is a general rule to remember with respect to...Ch. 10 - Garrison Boutique, a small novelty store, just...Ch. 10 - Derek DingIer conducts corporate training seminars...Ch. 10 - Bridget Youhzi works for a large firm. Her alma...Ch. 10 - Zena Technology sells arc computer printers for...Ch. 10 - Shelby Industries has a capacity to produce 45.000...Ch. 10 - Reubens Deli currently makes rolls for deli...Ch. 10 - Almond Treats manufactures various types of...Ch. 10 - Party Supply is trying to decide whether or not to...Ch. 10 - Underground Food Store has 4,000 pounds of raw...Ch. 10 - Ralston Dairy gathered this data about the two...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Rough Stuff makes 2 products: khaki shorts and...Ch. 10 - Ella Maksimov is CEO of her own marketing firm....Ch. 10 - You are trying to decide whether to take a job...Ch. 10 - You are working for a large firm that has asked...Ch. 10 - Dimitri Designs has capacity to produce 30,000...Ch. 10 - Aspen Enterprises makes award pins for various...Ch. 10 - Country Diner currently makes cookies for its...Ch. 10 - Oat Treats manufactures various types of cereal...Ch. 10 - The Party Zone is trying to decide whether or not...Ch. 10 - Berettis Food Mart has 6,000 pounds of raw pork...Ch. 10 - Balcom Dairy gathered this data about the two...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Power Corp. makes 2 products: blades for table...Ch. 10 - Artisan Metalworks has a bottleneck in their...Ch. 10 - Syntech makes digital cameras for drones. Their...Ch. 10 - Marcotti Cupcakes bakes and sells a basic cupcake...Ch. 10 - Ken Owens Construction specializes in small...Ch. 10 - Boston Executive. Inc., produces executive...Ch. 10 - Gent Designs requires three units of part A for...Ch. 10 - Trifecta Distributors has decided to discontinue...Ch. 10 - Extreme Sports sells logo sports merchandise. The...Ch. 10 - Hong Publishing has purchased Lang Publishing....Ch. 10 - Clarion Industries produces two joint products, Y...Ch. 10 - Quality Clothing, Inc., produces skorts and jumper...Ch. 10 - Ac Gems in the Rough, a jewelry company, the...Ch. 10 - Sports Specialists makes baseballs and softballs...Ch. 10 - Variety Artisans has a bottleneck in their...Ch. 10 - Mortech makes digital cameras for drones. Their...Ch. 10 - Cinnamon Depot bakes and sells cinnamon rolls for...Ch. 10 - Myrna White is a mobile housekeeper. The price for...Ch. 10 - Blake Cohen Painting Service specializes in small...Ch. 10 - Regal Executive, Inc., produces executive motor...Ch. 10 - Remarkable Enterprises requires four units of part...Ch. 10 - Colin OShea has a carpentry shop that employs 4...Ch. 10 - ZZOOM, Inc., has decided to discontinue...Ch. 10 - Strawberry Sweet Company makes a variety of jams...Ch. 10 - Laramie Industries produces two joint products, H...Ch. 10 - Jamboree Outfitters, Inc., produces pocket knives...Ch. 10 - Daisy Hernandez sells girls christening dresses...Ch. 10 - Dr. Detail is a mobile car wash. The price for a...Ch. 10 - At Stardust Gems, a faux gem and jewelry company,...Ch. 10 - Sports Butts makes basketballs and footballs in a...Ch. 10 - Seda Sarkisian makes wedding cakes from her home....Ch. 10 - You are a management accountant for Time Treasures...Ch. 10 - Brindis Babysitting Center currently rents a 1200...Ch. 10 - Akimotos Bicycle Co assembles three types of...
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Similar questions
- Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?arrow_forwardWhy are there objections to using absorption costing when segment reports of profitability are being prepared?arrow_forwardFor which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard costarrow_forward
- Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.arrow_forwardWhich of the following methods of cost estimation relies on only two data points? A. the high-low method B. account analysis C. least-squares regression D. SWOT analysis.arrow_forwardWhat advantage does the FIFO cost method have over the average cost method relative to providing information for cost control?arrow_forward
- When should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable costarrow_forwardWhich statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.arrow_forwardWhat are considered direct costs in segment analysis?arrow_forward
- Continuous improvement is the governing principle of a lean accounting system. Following are several performance measures. Some of these measures would be associated with a traditional standard-costing accounting system, and some would be associated with a lean accounting system. a. Materials price variances b. Cycle time c. Comparison of actual product costs with target costs d. Materials quantity or efficiency variances e. Comparison of actual product costs over time (trend reports) f. Comparison of actual overhead costs, item by item, with the corresponding budgeted costs g. Comparison of product costs with competitors product costs h. Percentage of on-time deliveries i. First-time through j. Reports of value- and non-value-added costs k. Labor efficiency variances l. Days of inventory m. Downtime n. Manufacturing cycle efficiency (MCE) o. Unused (available) capacity variance p. Labor rate variance q. Using a sister plants best practices as a performance standard Required: 1. Classify each measure as lean or traditional (standard costing). If traditional, discuss the measures limitations for a lean environment. If it is a lean measure, describe how the measure supports the objectives of lean manufacturing. 2. Classify the measures into operational (nonfinancial) and financial categories. Explain why operational measures are better for control at the shop level (production floor) than financial measures. Should any financial measures be used at the operational level? 3. Suggest some additional measures that you would like to see added to the list that would be supportive of lean objectives.arrow_forwardDefine and explain contribution margin on a per unit basis.arrow_forwardHow does the target cost method differ from cost-plus approaches?arrow_forward
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