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• Question 6 Breakeven analysis assumes over the relevant
range that
• Question 7 An increase in production levels within a relevant
range most likely would result in
• Question 8 The process of developing plans for a company’s
expected operations and controlling the operations to help carry
out those plans is known as
• Question 9 Sussex Company has budgeted its operations for
February 2012. No change in inventory level during the month is
planned. Selected data from estimated amounts are as follows:
• Question 10 A company is attempting to determine if there is a
cause and effect relationship between scrap value and output
produced. The following exhibit presents the company’s scrap
data for the last fiscal year:
• Question 11 A professional organization is planning to conduct
a series of one-day continuing education programs in various
cities. The projected costs related to these programs are
• Question 12 A company wants to determine its marketing costs
for budgeting purposes. Activity measures and costs incurred for
four months of the current year are presented in the table below.
Advertising is considered to be a discretionary cost. Salespersons
are paid monthly salaries plus commissions. The sales force was
increased from 20 to 21 individuals during the month of May.
• Question 13 Ajax Division of Carlyle Corporation produces
electric motors, 20% of which are sold to Bradley Division of
Carlyle and the remainder to outside customers. Carlyle treats its
divisions as profit centers and allows division managers to choose
their sources of sale and supply. Corporate policy requires that
all interdivisional sales and purchases be recorded at variable cost
as a transfer price. Ajax Division’s estimated sales and standard
cost data for the year ending December 31, 2012, based on the full
capacity of 100,000 units, are as follows:
• Question 14 Light Company has 2,000 obs olete light fixtures
that are carried in inventory at a manufacturing cost of $30,000.
If the fixtures are reworked for $10,000, they could be sold for
$18,000. Alternately, the light fixtures could be sold for $3,000 to