Question : 121.Which of the following not involved in the sell or : 1311776

 

 

121.Which of the following is not involved in the sell or process further decision?

a.Revenues

b.Variable costs

c.Opportunity costs

d.Fixed costs

 

 

122.All of the following are relevant to the sell or process further decision except

a.costs incurred beyond the split-off point.

b.revenues at the split-off point.

c.costs incurred before the split-off point.

d.revenues beyond the split-off point.

 

123.Costs incurred before the split-off point are

a.sunk costs.

b.incremental costs.

c.relevant costs.

d.opportunity costs.

 

 

124.Which of the following terms are synonymous?

a.Avoidable costs and irrelevant costs

b.Unavoidable costs and incremental costs

c.Sunk costs and relevant costs

d.Joint costs and sunk costs

 

 

125.Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Sales ValueAdditionalSales Value after

Productat Split-off Variable CostsFurther Processing

Green lumber$159,600$24,000$178,000

Rough lumber124,00028,200173,600

Sawdust102,00019,600130,000

 

The additional profit that would result from processing rough lumber further is

a.$21,400.

b.$49,600.

c.$145,400.

d.$95,800.

 

 

126.Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Sales ValueAdditionalSales Value after

Productat Split-off Variable CostsFurther Processing

Green lumber$159,600$24,000$178,000

Rough lumber124,00028,200173,600

Sawdust102,00019,600130,000

Which products should be processed further?

a.Green lumber and rough lumber

b.Green lumber and sawdust

c.Rough lumber and sawdust

d.All three products

 

 

127.Paul Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Sales ValueAdditionalSales Value after

Productat Split-off Variable CostsFurther Processing

Green lumber$159,600$24,000$178,000

Rough lumber124,00028,200173,600

Sawdust102,00019,600130,000

What is the increase in profit if the appropriate products are processed further?

a.$24,200

b.$29,800

c.$96,000

d.$255,800

 

 

128.The point in the production process when joint products are readily identifiable is the

a.separation point.

b.split-off point.

c.common point.

d.break-even point.

 

 

129.The costs incurred prior to the split-off point are referred to as

a.separable costs.

b.split-off costs.

c.joint product costs.

d.joint costs.

 

 

130.Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600. They could be updated for an additional $2,400 and sold. If Hi-Tech updates the computers and sells them, net income will increase by $9,000. At what price were the updated versions sold?

a.$26,800

b.$13,200

c.$13,600

d.$16,000

 

 

 

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