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64. Which of the following regarding joint cost allocation is not true? a. The sales value of the end products is the most common method used to allocate joint costs. b. Inventory cost and cost of goods sold computations for internal reporting purposes require joint cost allocation. c. Inventory cost and cost of goods sold computations for external reporting purposes require joint cost allocation. d. Joint cost allocation is unnecessary in deciding to sell or process further beyond the split-off point.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.64. Which of the following[…]

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“65. Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $120 $112 Machine set-ups needed per unit 10 set-ups 8 set-ups The company can perform 60,000 machine set-ups each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? a. $720,000. b. $840,000. c. $780,000. d. $1,560,000.”,”2Contribution Margin per Machine set-ups: Product L = 120/10 = $12/setup Product C = 112/8 = $14/setupProduct C can produce the largest possible contribution margin because its CM/set-ups is $14, compared to Product L’s $12.Product C:Machine set-ups each period = 60,000 = 7,500 unitsMachine set-ups needed per unit 8CM = Number of Units x CM $ per unitContribution Margin = 7,500 x $112 = $840

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“65. Consider the following production[…]

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67. In which of the following situations would a project be acceptable under the time-adjusted rate of return method? I. The time-adjusted rate of return is equal to the cost of capital. II. The time-adjusted rate of return is greater than the cost of capital. III. The time-adjusted rate of return is less than or equal to the cost of capital. a. Only I. b. Only III. c. Only II. d. Both I and II.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.67. In which of the[…]

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68. The management of a company considering an investment in automated equipment should consider: a. primarily the reduction in direct labor cost since this reduction usually is sufficient to justify the investment. b. only the quantifiable tangible aspects of the benefits of automation that can be used to calculate the net present value or the time-adjusted rate of return. c. both the tangible and intangible benefits of automation including an attempt to quantify the intangible benefits. d. the need for total automation rather than a piecemeal approach.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.68. The management of a[…]

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69. The evaluation of an investment having uneven cash flows using the payback method: a. cannot be done. b. can be done only by matching cash inflows and investment outflows on a year-by-year basis. c. will produce essentially the same results as those obtained through the use of discounted cash flow techniques. d. requires the use of a sophisticated calculator or computer software.

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.69. The evaluation of an[…]

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