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# The cost of a computer system installed last year is an example

### Customer Question

The cost of a computer system installed last year is an example of: (Points: 2)
a sunk cost
a relevant cost
a differential cost
an avoidable cost

2. In evaluating different alternatives, it is useful to concentrate on: (Points: 2)
variable costs
fixed costs
total costs
relevant costs

3. Relevant costs in a make-or-buy decision of a part include: (Points: 2)
setup overhead costs for the manufacture of the product using the outsourced part
currently used manufacturing capacity that has alternative uses when part is outsourced
annual plant insurance costs that will remain the same
corporate office costs that will be allocated differently

4. When there is excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price when: (Points: 2)
incremental revenues exceed incremental costs
Submitted: 7 years ago.
Category: Homework
Expert:  Gaurav replied 7 years ago.

Hello

Question 4 seems to be incomplete, could you post the complete question please.

Customer: replied 7 years ago.

oops...I'm sorry...there are 20 questions....

1. When there is excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price when: (Points: 2)
incremental revenues exceed incremental costs
additional fixed costs must be incurred to accommodate the order
the company placing the order is in the same market segment as your current customers
None of the above is correct.

2. Costs are relevant to a particular decision if they: (Points: 2)
are variable costs
are fixed costs
differ across, the decision alternatives being considered
remain unchanged across the alternatives being considered

3. The following information applies to Questions 7 and 8.

Jim's 5-year-old Geo Prizm requires repairs estimated at \$3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for \$3,000 cash. Julie estimated the following costs for the two cars:

 Geo Prizm Honda Civic Acquisition cost \$15,000 \$3,000 Repairs \$ 3,000 --- Annual operating costs(Gas, maintenance, insurance) \$ 2,280 \$2,100

The cost(s) NOT relevant for this decision is(are): (Points: 2)
the acquisition cost of the Geo Prizm
the acquisition cost of the Honda Civic
the repairs to the Geo Prizm
the annual operating costs of the Honda Civic

4. What should Jim do? What are his savings in the first year? (Points: 2)
Fix the Geo Prizm; \$5,518
Fix the Geo Prizm; \$5,280

5. Employee morale at Dos Santos, Inc., is very high. This type of information is known as: (Points: 2)
a qualitative factor
a quantitative factor
a differential factor
an opportunity cost

6. The theory of constraints: (Points: 2)
emphasizes long-term optimization
maintains that carefully managing production bottlenecks will increase operating income
helps managers make special one-time decisions
suggests that some component parts should be outsourced

7. Which model has the greatest contribution margin per machine-hour? (Points: 2)
Model TS
Model AY
Model GG
both Models YA and GG

8. Sunk costs: (Points: 2)
are relevant
are differential
have future implications
are ignored when evaluating alternatives

9. When deciding to lease a new cutting machine or continue using the old machine, the following costs are all relevant EXCEPT the: (Points: 2)
\$50,000 cost of the old machine
\$20,000 cost of the new machine
\$10,000 selling price of the old machine
\$3,000 annual savings in operating costs if the new machine is purchased

10. Costs are relevant to a particular decision if they: (Points: 2)
are flexible costs
are capacity-related costs
differ across the alternatives being considered
remain unchanged across the alternatives being considered

11. When making decisions: (Points: 2)
quantitative factors are the most important
qualitative factors are the most important
appropriate weight must be given to both quantitative and qualitative factors
both quantitative and qualitative factors are unimportant

12. Which of following are risks of outsourcing the production of a part? (Points: 2)
unpredictable quality
unreliable delivery
unscheduled price increases
All of these are risks of outsourcing.

13. When evaluating a make-or-buy decision, which of the following does NOT need to be considered? (Points: 2)
alternative uses of the production capacity
the original cost of the production equipment
the quality of the supplier's product
the reliability of the supplier's delivery schedule

14. In ________, all similar equipment or functions are grouped together. (Points: 2)
a process layout
a product layout
cellular manufacturing
just-in-time production

15. Characteristics of a process layout include: (Points: 2)
continuous processing
long production paths
small amounts of inventory
no work-in-process storage areas

16. Constraints may include: (Points: 2)
the availability of direct materials in manufacturing
linear square feet of display space for a retailer
direct labor in the service industry
All of these are correct.

17. Characteristics of just-in-time manufacturing include all of the following EXCEPT: (Points: 2)
the ability to process items in large batches
making a product only when the customer requires it
no work-in-process inventories
a problem anywhere can stop production

18. Of the four quality costing categories, the most damaging category to the organization is: (Points: 2)
prevention costs
appraisal costs
internal failure costs
external failure costs

19. Training employees in methods to maintain quality is an example of ________. (Points: 2)
prevention costs
appraisal costs
internal failure costs
external failure costs

20. ________ include the cost of raw-materials inspections and assembly-line inspections. (Points: 2)
Prevention costs
Appraisal costs
Internal failure costs
External failure costs

Customer: replied 7 years ago.
okay...only 25 minutes left now....
Expert:  Manal Elkhoshkhany replied 7 years ago.
<p>Hello homeworkgirl</p><p> </p><p>I am sorry no one helped with those questions. Here is what I suggest:</p><p> </p><p>Please make a new post at least 48 hours befre you plan to take a quiz and type "For BusinessTutor" at the beginnning of the post. In that post, just tell me the day, time, & time zone at which you are planning o take the quiz and I will meet you here. This is the best way to ensure that you do not run out of time</p><p> </p><p>Regards,</p>
Customer: replied 7 years ago.
Relist: I still need help.
Expert:  Manal Elkhoshkhany replied 7 years ago.
Do you still need help with these questions?
Customer: replied 7 years ago.
No, but thank u....I look forward to your help on saturday though! :)
Expert:  Manal Elkhoshkhany replied 7 years ago.
Sure :)

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