Question :
15) Qualitative factors ________.
A) generally easily measured in quantitative terms : 1211777
15) Qualitative factors ________.
A) generally are easily measured in quantitative terms
B) are generally irrelevant for decision making
C) may include either financial or nonfinancial information
D) include customer satisfaction
16) Which of the following is true of historical costs?
A) They are useful for making future predictions.
B) They are used for decision making.
C) They are always accounted as opportunity costs.
D) They cannot be fixed costs.
17) When making decisions ________.
A) more weightage should be given to qualitative factors
B) more weightage should be given to quantitative factors
C) appropriate weight must be given to both quantitative and qualitative factors
D) both quantitative and qualitative factors are unimportant
18) Employee morale at Dos Santos, Inc., is very high. This type of information is an example of ________.
A) qualitative factors
B) quantitative factors
C) irrelevant factors
D) financial factors
19) Roberto owns a small body shop. His major costs include labor, parts, and rent. In the decision-making process, these costs are considered to be ________.
A) empirical costs
B) qualitative factors
C) quantitative factors
D) opportunity costs
20) One-time-only special orders should only be accepted if ________.
A) incremental revenues exceed incremental costs
B) differential revenues exceed variable costs
C) incremental revenues exceed fixed costs
D) total revenues exceed total costs
21) When deciding to accept a one-time-only special order from a wholesaler, management should ________.
A) consider the sunk costs and opportunity costs
B) not consider the special order’s impact on future prices of their products
C) determine whether excess capacity is available
D) verify past design costs for the product
22) When there is an excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price if ________.
A) incremental revenues exceed incremental costs
B) additional fixed costs is incurred to accommodate the order
C) the company placing the order is in the same market segment as your current customers
D) incremental revenue equals incremental operating income
23) Full costs of a product are the sum of ________.
A) fixed costs and sunk costs in all the business functions of the value chain
B) variable costs and sunk costs in all the business functions of the value chain
C) all variable and fixed costs in all the business functions of the value chain
D) fixed costs, variable costs, and sunk costs in the value chain
Answer the following questions using the information below:
Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:
Variable costs:
Direct materials$120
Direct labor60
Manufacturing support105
Marketing costs45
Fixed costs:
Manufacturing support135
Marketing costs45
Total costs510
Markup (50%)255
Targeted selling price$765
24) What is the full cost of the product per unit?
A) $330
B) $765
C) $510
D) $255
