1.\u00a0(TCO\u00a01)\u00a0If\u00a0products\u00a0are\u00a0alike,\u00a0then\u00a0for\u00a0costing\u00a0purposes\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\u00a0\t2.\u00a0(TCO\u00a01)\u00a0Ireland\u00a0Company\u00a0produces\u00a0a\u00a0special\u00a0spray\u00a0nozzle.\u00a0\u00a0The\u00a0budgetedindirect\u00a0total\u00a0cost\u00a0of\u00a0inserting\u00a0the\u00a0spray\u00a0nozzle\u00a0is\u00a0$180,000.\u00a0\u00a0The\u00a0budgeted\u00a0number\u00a0of\u00a0nozzles\u00a0to\u00a0be\u00a0inserted\u00a0is\u00a080,000.\u00a0\u00a0What\u00a0is\u00a0the\u00a0budgeted\u00a0indirect\u00a0cost\u00a0allocation\u00a0rate\u00a0for\u00a0this\u00a0activity?\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\t3.\u00a0(TCO\u00a02)\u00a0Variable\u00a0overhead\u00a0costs\u00a0include\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\t4.\u00a0(TCO\u00a02)\u00a0Information\u00a0pertaining\u00a0to\u00a0Brenton\u00a0Corporation’s\u00a0sales\u00a0revenue\u00a0ispresented\u00a0in\u00a0the\u00a0following\u00a0table:\t \ufffd \ufffd 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\ufffd\u00a0\u00a0\u00a0\u00a0$400,000\tManagement\u00a0estimates\u00a0that\u00a05%\u00a0of\u00a0credit\u00a0sales\u00a0are\u00a0not\u00a0collectible.\u00a0\u00a0Of\u00a0the\u00a0credit\u00a0sales\u00a0that\u00a0are\u00a0collectible,\u00a075%\u00a0are\u00a0collected\u00a0in\u00a0the\u00a0month\u00a0of\u00a0sale\u00a0and\u00a0the\u00a0remainder\u00a0in\u00a0the\u00a0month\u00a0following\u00a0the\u00a0sale.\u00a0\u00a0Cost\u00a0of\u00a0purchases\u00a0of\u00a0inventory\u00a0each\u00a0month\u00a0are\u00a080%\u00a0of\u00a0the\u00a0next\u00a0month’s\u00a0projected\u00a0total\u00a0sales.\u00a0\u00a0All\u00a0purchases\u00a0of\u00a0inventory\u00a0are\u00a0on\u00a0account;\u00a050%\u00a0are\u00a0paid\u00a0in\u00a0the\u00a0month\u00a0of\u00a0purchase,\u00a0and\u00a0the\u00a0remainder\u00a0is\u00a0paid\u00a0in\u00a0the\u00a0month\u00a0following\u00a0the\u00a0purchase.\tBrenton’s\u00a0budgeted\u00a0total\u00a0cash\u00a0receipts\u00a0in\u00a0March\u00a0are\t(Points\u00a0:\u00a05)\u00a0\t5.\u00a0(TCO\u00a02)Budgeting\u00a0provides\u00a0all\u00a0of\u00a0the\u00a0following\u00a0except\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0 6.\u00a0(TCO\u00a03)\u00a0For\u00a0January,\u00a0the\u00a0cost\u00a0components\u00a0of\u00a0a\u00a0picture\u00a0frame\u00a0include\u00a0$0.20for\u00a0the\u00a0glass,\u00a0$0.85\u00a0for\u00a0the\u00a0wooden\u00a0frame,\u00a0and\u00a0$0.60\u00a0for\u00a0assembly.\u00a0\u00a0The\u00a0assembly\u00a0desk\u00a0and\u00a0tools\u00a0cost\u00a0$200.\u00a0\u00a0A\u00a0total\u00a0of\u00a01,000\u00a0frames\u00a0is\u00a0expected\u00a0to\u00a0be\u00a0produced\u00a0in\u00a0the\u00a0coming\u00a0year.\u00a0\u00a0What\u00a0cost\u00a0function\u00a0best\u00a0represents\u00a0these\u00a0costs?\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\t7.\u00a0(TCO\u00a03)\u00a0Which\u00a0cost\u00a0estimation\u00a0method\u00a0uses\u00a0a\u00a0formal\u00a0mathematical\u00a0methodto\u00a0develop\u00a0cost\u00a0functions\u00a0based\u00a0on\u00a0past\u00a0data?\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\u00a0\t8.\u00a0(TCO\u00a04)Sunk\u00a0costs\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\t9.\u00a0(TCO\u00a05)\u00a0The\u00a0theoryof\u00a0constraints\u00a0is\u00a0used\u00a0for\u00a0cost\u00a0analysis\u00a0when\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0\t10.\u00a0(TCO\u00a05)\u00a0Producingmore\u00a0nonbottleneck\u00a0output\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0 11.\u00a0(TCO\u00a06)\u00a0What\u00a0type\u00a0of\u00a0cost\u00a0is\u00a0the\u00a0result\u00a0of\u00a0an\u00a0event\u00a0that\u00a0results\u00a0in\u00a0morethan\u00a0one\u00a0product\u00a0or\u00a0service\u00a0simultaneously?\u00a0(Points\u00a0:\u00a05)\u00a0\t12.\u00a0(TCO\u00a06)\u00a0Which\u00a0of\u00a0the\u00a0following\u00a0is\u00a0a\u00a0disadvantage\u00a0of\u00a0the\u00a0physical-measuremethod\u00a0of\u00a0allocating\u00a0joint\u00a0costs?\u00a0(Points\u00a0:\u00a05)\u00a0\t13.\u00a0(TCO\u00a07)\u00a0An\u00a0understanding\u00a0of\u00a0life-cycle\u00a0costs\u00a0can\u00a0lead\u00a0to\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0 14.\u00a0(TCO\u00a07)\u00a0Each\u00a0month,\u00a0Haddon\u00a0Company\u00a0has\u00a0$300,000\u00a0total\u00a0manufacturingcosts\u00a0(20%\u00a0fixed)\u00a0and\u00a0$125,000\u00a0distribution\u00a0and\u00a0marketing\u00a0costs\u00a0(75%\u00a0fixed).\u00a0\u00a0Haddon’s\u00a0monthly\u00a0sales\u00a0are\u00a0$600,000.\tThe\u00a0markup\u00a0percentage\u00a0on\u00a0full\u00a0cost\u00a0to\u00a0arrive\u00a0at\u00a0the\u00a0target\u00a0(existing)\u00a0selling\u00a0price\u00a0is\t(Points\u00a0:\u00a05)\u00a0\t15.\u00a0(TCO\u00a08)\u00a0Transfer\u00a0prices\u00a0should\u00a0be\u00a0judged\u00a0by\u00a0whether\u00a0they\u00a0promote\u00a0(Points\u00a0:\u00a05)\u00a0\t\u00a0 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\ufffd\u00a0Current\u00a0sales\u00a0are\u00a0expected\u00a0to\u00a0be\u00a02,500\u00a0units\u00a0of\u00a0each\u00a0card\u00a0design.\u00a0\u00a0Each\u00a0card\u00a0sells\u00a0for\u00a0$3.50.\t\u2219 \ufffd\u00a0Sales\u00a0units\u00a0equal\u00a0production\u00a0units\u00a0each\u00a0year.\u00a0\tWhat\u00a0is\u00a0the\u00a0total\u00a0estimated\u00a0life-cycle\u00a0operating\u00a0income?\t4.\u00a0\t(TCO\u00a08)\u00a0Motormart\u00a0Company\u00a0manufactures\u00a0automobiles.\u00a0\u00a0The\u00a0red\u00a0car\u00a0division\u00a0sells\u00a0its\u00a0red\u00a0cars\u00a0for\u00a0$25,000\u00a0each\u00a0to\u00a0the\u00a0general\u00a0public.\u00a0\u00a0The\u00a0red\u00a0cars\u00a0have\u00a0manufacturing\u00a0costs\u00a0of\u00a0$12,500\u00a0each\u00a0for\u00a0variable\u00a0and\u00a0$5,000\u00a0each\u00a0for\u00a0fixed\u00a0costs.\u00a0\u00a0The\u00a0division’s\u00a0total\u00a0fixed\u00a0manufacturing\u00a0costs\u00a0are\u00a0$25,000,000\u00a0at\u00a0the\u00a0normal\u00a0volume\u00a0of\u00a05,000\u00a0units.\u00a0\tThe\u00a0blue\u00a0car\u00a0division\u00a0has\u00a0been\u00a0unable\u00a0to\u00a0meet\u00a0the\u00a0demand\u00a0for\u00a0its\u00a0cars\u00a0this\u00a0year.\u00a0\u00a0It\u00a0has\u00a0offered\u00a0to\u00a0buy\u00a01,000\u00a0cars\u00a0from\u00a0the\u00a0red\u00a0car\u00a0division\u00a0at\u00a0the\u00a0full\u00a0cost\u00a0of\u00a0$16,000.\u00a0\u00a0The\u00a0red\u00a0car\u00a0division\u00a0has\u00a0excess\u00a0capacity\u00a0and\u00a0the\u00a01,000\u00a0units\u00a0can\u00a0be\u00a0produced\u00a0without\u00a0interfering\u00a0with\u00a0the\u00a0outside\u00a0sales\u00a0of\u00a05,000.\u00a0\u00a0The\u00a06,000\u00a0volume\u00a0is\u00a0within\u00a0the\u00a0division’s\u00a0relevant\u00a0operating\u00a0range.\u00a0\t5.\u00a0(TCO\u00a011)\u00a0For\u00a0supply\u00a0item\u00a0LK,\u00a0Boatman\u00a0Company\u00a0has\u00a0been\u00a0ordering\u00a0125\u00a0units\u00a0based\u00a0on\u00a0the\u00a0recommendation\u00a0of\u00a0the\u00a0salesperson\u00a0who\u00a0calls\u00a0on\u00a0the\u00a0company\u00a0monthly.\u00a0\u00a0The\u00a0company\u00a0has\u00a0hired\u00a0a\u00a0new\u00a0purchasing\u00a0agent,\u00a0who\u00a0wants\u00a0to\u00a0start\u00a0using\u00a0the\u00a0economic-order-quantity\u00a0method\u00a0and\u00a0its\u00a0supporting\u00a0decision\u00a0elements.\u00a0\u00a0She\u00a0has\u00a0gathered\u00a0the\u00a0following\u00a0information:\u00a0\tAnnual\u00a0demand\u00a0in\u00a0units 250\tDays\u00a0used\u00a0per\u00a0year 250\tLead\u00a0time,\u00a0in\u00a0days 13\tOrdering\u00a0costs $100\tAnnual\u00a0unit\u00a0carrying\u00a0costs $20<\/p>\n","protected":false},"excerpt":{"rendered":"
1.\u00a0(TCO\u00a01)\u00a0If\u00a0products\u00a0are\u00a0alike,\u00a0then\u00a0for\u00a0costing\u00a0purposes\u00a0(Points\u00a0:\u00a05)\u00a0 \u00a0\u00a0 2.\u00a0(TCO\u00a01)\u00a0Ireland\u00a0Company\u00a0produces\u00a0a\u00a0special\u00a0spray\u00a0nozzle.\u00a0\u00a0The\u00a0budgetedindirect\u00a0total\u00a0cost\u00a0of\u00a0inserting\u00a0the\u00a0spray\u00a0nozzle\u00a0is\u00a0$180,000.\u00a0\u00a0The\u00a0budgeted\u00a0number\u00a0of\u00a0nozzles\u00a0to\u00a0be\u00a0inserted\u00a0is\u00a080,000.\u00a0\u00a0What\u00a0is\u00a0the\u00a0budgeted\u00a0indirect\u00a0cost\u00a0allocation\u00a0rate\u00a0for\u00a0this\u00a0activity?\u00a0(Points\u00a0:\u00a05)\u00a0 \u00a0 3.\u00a0(TCO\u00a02)\u00a0Variable\u00a0overhead\u00a0costs\u00a0include\u00a0(Points\u00a0:\u00a05)\u00a0 \u00a0 4.\u00a0(TCO\u00a02)\u00a0Information\u00a0pertaining\u00a0to\u00a0Brenton\u00a0Corporation’s\u00a0sales\u00a0revenue\u00a0ispresented\u00a0in\u00a0the\u00a0following\u00a0table: \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0February \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0March \ufffd \ufffd \ufffdApril \ufffd \ufffd \ufffd\u00a0\u00a0Cash\u00a0Sales \ufffd \ufffd \ufffd\u00a0\u00a0$160,000 \ufffd \ufffd\u00a0\u00a0$150,000 \ufffd\u00a0\u00a0\u00a0\u00a0$120,000 \ufffd \ufffd \ufffd\u00a0\u00a0Credit\u00a0Sales \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0300,000 \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0400,000 \ufffd \ufffd280,000 \ufffd Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200960","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200960"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200960\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200960"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}