Answer the following statements true (T) or false (F)
1) An outsourcing decision is a choice made by management about whether to make a component internally or buy it from an outside source.
2) A company should process its product further if the additional revenue from further processing exceeds the additional cost of further processing.
3) A company should process its product further if the additional processing generates higher sales revenues.
4) Airbolt Avionics makes aircraft instrumentation. Their basic navigation radio requires $140 in variable costs and requires $4,000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $20 per unit of variable costs and $300 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $250 to $290. In making this decision, the amount of additional fixed costs per month is a relevant cost.
5) An operational asset used for a long period of time is known as a capital asset.
1) TRUE
2) TRUE
3) FALSE
4) TRUE
5) TRUE
You might also like to view...
Cost-volume-profit analysis can be used to compute expected income from predicted sales and cost levels.
Answer the following statement true (T) or false (F)
The time series component that reflects variability due to natural disasters is called
a. a trend b. seasonal c. cyclical d. irregular
A transportation intermediary used to consolidate large numbers of small shipments to fill entire truck trailers or rail cars to achieve truckload or carload transportation rates is referred to as:
a. Consolidation forwarder b. Load broker c. Transportation broker d. Freight forwarder
It is good practice to have the person who will be responsible for the major work tasks estimate the associated costs
a. True b. False Indicate whether the statement is true or false