Test bank and solution of nature of cost (1)

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Test bank and solution of nature of cost (1)

Chapter_2_9e_Solutions.pdfZimmermanChO2.pdfChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (10 minutes) [Relevant costs and benefits]

Test bank and solution of nature of cost (1)]Current cafeteria income Sales Variable costs (40% X 12.000) Fixed costs Operating incomeSI 2,000 (4.800) (4,700)2,5Vending machine income Sales (12.

000 X 1.4) Darien's share of sales (.16 X SI6,800) Increase in operating incomeSI 6.8002.688 s 188p 2-2:Negative Opportunity Costs (10 minutes)[Opport Test bank and solution of nature of cost (1)

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

Test bank and solution of nature of cost (1)

t 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 wan

Chapter_2_9e_Solutions.pdfZimmermanChO2.pdfChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (10 minutes) [Relevant costs and benefits]

Test bank and solution of nature of cost (1)removing the pool and you save S3.000. The decision to sell the house includes an opportunity benefit (a negative opportunity cost) of S3.000.p 2-3:So

lution to NPR (10 minutes)[Opportunity cost of radio listeners]The quoted passage ignores the opportunity cost of listeners* having to forego normal p Test bank and solution of nature of cost (1)

rogramming 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' oppo

Test bank and solution of nature of cost (1)

rtunity cost, such campaigns may be quite costly.Chapter 2McGraw-Hill Education 2017Instructor's Manual. Accounting for Decision Making and Control449

Chapter_2_9e_Solutions.pdfZimmermanChO2.pdfChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (10 minutes) [Relevant costs and benefits]

Test bank and solution of nature of cost (1) 1.000 cases of 4. 8. and 12 ounce bottles, construct of lotion bundle to consist of 2 cases of 4 ounce bottles. 4 cases of 8 ounce bottles, and I cas

e of 12 ounce bottles. The following table calculates the break-even number of lotion bundles to break even and hence the number of cases of each of t Test bank and solution of nature of cost (1)

he three products required to break even.Per Case4 ounce8 ounce12 ounceBundlePrice$36.00$66.00$72.00Variable costs 13.0024,5$27.00Contribution margin$

Test bank and solution of nature of cost (1)

23.00$41.50$45.00Current production200040001000Cases per bundle241Contribution margin per bundle$46.00$166.00$45.00$257.00Fixed costs771Number of bund

Chapter_2_9e_Solutions.pdfZimmermanChO2.pdfChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (10 minutes) [Relevant costs and benefits]

Test bank and solution of nature of cost (1)pace]Profits after fixed cost allocationsAllocated fixed costsProfits before fixed cost allocationsT.ease Payments

Chapter_2_9e_Solutions.pdfZimmermanChO2.pdfChapter 2 The Nature of Costsp 2-1:Solution to Darien Industries (10 minutes) [Relevant costs and benefits]