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19. When a company assigns the costs of direct materials, direct labor,
and both variable and fixed manufacturing overhead to products, that
company is using
20. If a division manager’s compensation is based upon the division’s
net income, the manager may decide to meet the net income targets by
increasing production when using
21. An unrealistic budget is more likely to result when it
22. A major element in budgetary control is
23. The purpose of the sales budget report is to
24. The accumulation of accounting data on the basis of the individual
manager who has the authority to make day-to-day decisions about
activities in an area is called
25. Variance reports are
26. Internal reports that review the actual impact of decisions are
prepared by
27. The process of evaluating financial data that change under
alternative courses of action is called
28. Seasons Manufacturing manufactures a product with a unit variable
cost of $100 and a unit sales price of $176. Fixed manufacturing costs
were $480,000 when 10,000 units were produced and sold. The
company has a one-time opportunity to sell an additional 1,000 units at
$140 each in a foreign market which would not affect its present sales. If
the company has sufficient capacity to produce the additional units,
acceptance of the special order would affect net income as follows:
29. Carter, Inc. can make 100 units of a necessary component part with
the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000
If Carter can purchase the component externally for $220,000 and only
$10,000 of the fixed costs can be avoided, what is the correct make-or-
buy decision?