Credit Sales 300,000 400,000 280,00
0
Total Sales $ 460,000 $ 550,000 $ 400,0
00 Management estimates that 5 % of credit sales are not collectible. Of t he credit sales that are collectible, 75 % are collected in the month of s ale and the remainder in the month following the sale. Cost of purcha ses of inventory each month is 80 % of the next month ' s projected total sales. All purchases of inventory are on 5.( TCO 2) Budgeting provides all of the following EXCEPT 6.( TCO 3) the cost components of an air conditioner include $ 35 for t he compressor, $ 15 for the sheetmolded compound frame, and $ 100 per unit for assembly. The factor y machines-andtools cost is $ 80,000. The company expects to produce 1,500 air cond itioners in the coming year. What cost function best represents these costs? 7.( TCO 3) which cost estimation method uses a formal mathematical method to develop cost functions based on past data? 8.( TCO 4) Sunk costs 9.( TCO 5) in the theory of constraints, the only direct costs are 10.( TCO 5) Producing more non bottleneck output 11.( TCO 6) which of the following methods of allocating costs use m arket-based data? 12.( TCO 6) the benefitsreceived criteria for allocating joint costs indicates marketbased measures are preferred because 13.( TCO 7) Life-cycle budgeting is particularly important when 14.( TCO 7) Pritchard Company manufactures a product that has a var iable cost of $ 30 per unit. Fixed costs total $ 2,000,000, allocated on t he basis of the number of units produced. Selling price is computer b y adding a 12 % markup to full cost. How much should the selling pri ce be per unit for 300,000 units? 15.( TCO 8) the costs used in cost-based transfer prices 16.( TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $ 5 per pound. D