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ACC 560 Week 6 Quiz 4 (Chapters 7 and 8)
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Question 1
In March 2016, Wheels ‘N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be
Question 2
In cost-plus pricing, the target selling price is computed as
Question 3
The labor charge per hour in time-and-material pricing includes all of the following
Question 4
A company that is a price taker would most likely use which of the following methods?
Question 5
The desired ROI per unit is calculated by
Question 6
A company is contemplating the acceptance of a special order. The order would not affect regular sales and could be filled without exceeding plant capacity. However, a new stamping machine would have to be purchased in order to stamp the customer’s name on the product. Which of the following is likely?
Question 7
Which statement is true concerning the decision rule on whether to make or buy?
Question 8
The opportunity cost of an alternate course of action that is relevant to a make-or-buy decision is
Question 9
Martin Company incurred the following costs for 70,000 units:
Variable costs $420,000
Fixed costs 392,000
Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping.
If Martin wants to earn $6,000 on the order, what should the unit price be?
Question 10
Incremental analysis is most useful
