题目内容

In a sell or process further decision, consider the following costs: I. A variable production cost incurred prior to split-off.II. A variable production cost incurred after split-off.III. An avoidable fixed production cost incurred after split-off. Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further?

A. Only I
B. Only III
C. Only I and II
D. Only I and III

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Hodge Inc. has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap?

A. ($79,100)
B. ($21,700)
C. ($4,500)
D. $52,900

Hamby Corporation is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.30 per liter. Material W34C is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $7.60 per liter. New stocks of the material can be readily purchased for $8.35 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order?

A. $6,481
B. $6,376
C. $6,513
D. $5,928

Schickel Inc. regularly uses material B39U and currently has in stock 460 liters of the material for which it paid $3,128 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.95 per liter. New stocks of the material can be purchased on the open market for $6.45 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 760 liters of the material to be used in a job for a customer. The relevant cost of the 760 liters of material B39U is:

A. $4,902
B. $4,672
C. $4,522
D. $6,450

One of the employees of Davenport Corporation recently was involved in an accident with one of the corporation's delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below: Initial cost of the damaged van $30,000 Accumulated depreciation to date on van $18,000 Salvage value of van immediately before crash $9,000 Salvage value of van immediately after crash $1,000 Cost to repair damaged van $5,000 Cost of a comparable used van $10,000 Based on the information above, Davenport would be financially better off:

A. $1,000 by buying the comparable van.
B. $2,000 by buying the comparable van.
C. $2,000 by repairing the damaged van.
D. $4,000 by repairing the damaged van.

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