Anderson Co makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson at $66 per unit. Anderson's production costs are as follows: Direct materials $ 8 Direct labor 32 Variable overhead 12 Fixed overhead (based on normal capacity) 34 If Anderson accepts the order, $8 of fixed overhead per unit will be
eliminated. If the offer is accepted, operating income will
a. increase by $100,000.
b. decrease by $70,000.
c. decrease by $30,000.
d. increase by $60,000.
C
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A. operational perspective B. internal business perspective C. customer perspective D. financial perspective E. innovation and learning perspective
When asking for an adjustment from a company, what is being asked for?
A) The settlement of a claim B) An opportunity to file a formal complaint C) An opportunity to suggest how a product or service could be improved D) A resolution to a problem before further steps are required E) A discount on a product or service
______ is designed to anticipate and prevent possible problems.
a. Concurrent control b. Preliminary control c. Rework control d. Damage control
A gozinto chart is another name for ______.
a. an assembly drawing b. an assembly chart c. a Pareto chart d. a route sheet