Test bank and solution of cost accounting (2)

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Test bank and solution of cost accounting (2)

Chapter 02 - The Nature of CostsChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (CMA adapted) (10 minutes)[Relevant costs and benefit

Test bank and solution of cost accounting (2)ts]Current cafeteria incomeSales Variable costs (40% X 12.000) Fixed costs Operating incomeSI 2.000 (4,800) (4-700)S2.500Vending machine income Sales

(12.000 X 1.4) Darien’s share of sales (.16 X $16,800) Increase in operating incomeSI 6.8002,688 $ 188p 2-2:Negative Opportunity Costs (10 minutes)[Op Test bank and solution of cost accounting (2)

portunity cost]Yes. when the most valuable alternative to a decision is a net cash outflow that would have occurred is now eliminated. The opportunity

Test bank and solution of cost accounting (2)

cost of that decision is negative (an opportunity benefit). For example, suppose you own a house with an in-ground swimming pool you no longer use or

Chapter 02 - The Nature of CostsChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (CMA adapted) (10 minutes)[Relevant costs and benefit

Test bank and solution of cost accounting (2)oid removing the pool and you save $3,000. The decision to sell the house includes an opportunity benefit (a negative opportunity cost) of S3.000.p 2-

3:Solution to NPR (10 minutes)[Opportunity cost of radio listeners]The quoted passage ignores the opportunity cost of listeners' having to forego norm Test bank and solution of cost accounting (2)

al programming for on-air pledges. While such fundraising campaigns may have a low out-of-pocket cost to NPR. if they were to consider the listeners'

Test bank and solution of cost accounting (2)

opportunity cost, such campaigns may be quite costly.44958c 2014 by McGraw-Hill Education. Tlus IS propnetaiy material solely tor authorized instructo

Chapter 02 - The Nature of CostsChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (CMA adapted) (10 minutes)[Relevant costs and benefit

Test bank and solution of cost accounting (2)OU a website. UIwhole

ven that current production and sales are: 2,000.4.000, and 1.000 cases of 4. 8, and 12 ounce bottles, construct of lotion bundle to consist of 2 case Test bank and solution of cost accounting (2)

s of 4 ounce bottles. 4 cases of 8 ounce bottles, and 1 case of 12 ounce bottles. Tile following table calculates the breakeven number of lotion bundl

Test bank and solution of cost accounting (2)

es to break even and hence the number of cases of each of the three products required to break even.Per Case4 ounce8 ounce12 ounceBundlePriceS36.00S66

Chapter 02 - The Nature of CostsChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (CMA adapted) (10 minutes)[Relevant costs and benefit

Test bank and solution of cost accounting (2) bundleS46.00SI 66.00S45.00S257.00Fixed costsS771.000Number of bundles to break even3000Number of cases to break even6000120003000p 2-5:Solution to J.

p. Max Department Stores (15 minutes) [Opportunity cost of retail space]Home AppliancesTelevisionsProfits after fixed cost allocations6482Allocated f Test bank and solution of cost accounting (2)

ixed costs70008400Profits before fixed cost allocations7100090400

Chapter 02 - The Nature of CostsChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (CMA adapted) (10 minutes)[Relevant costs and benefit