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You are watching: Costs which are always relevant in decision making are those costs which are

Solution: (12) Option(a) is exactly Generally, Variable expenses are more relevant to manufacturing decision than solved cost. (13) Option(c) is correct The product A have to be more processed and also then sold. Network Revenue in ~ split-level suggest =$40,000 network R…View the complete answer
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Transcribed image text: 12. Costs which are always relevant in decision making space those costs which are: a) variable. B) avoidable. E) sunk. D) fixed. 13. The Wyeth company produces three products, A. B, and C, native a solitary raw material input. Product A deserve to be sold at the split-ofrport because that $40,000, or it deserve to be processed more at aiotal price ofsis 0:00 and also then marketed for sssoo . Joint product costs total $60,000 annually, Product A have to be: a) discontinued because revenues after further processing are less than full joint product expenses b) offered at the split-off point d) processed further only if its share of the complete joint prodact expenses is less than the incremental profits from further processing. A decision encountering a for sure of one of two people acepting or rejecting a special sell for among its products. A cost that is not appropriate a) direct materials. B) variable overhcad c) addressed overhead that will be avoided if the special market is accepted d) common fixed overhead the will proceed if the special offer is no accepted. 15. A segment that a service responsible for both revenues and expenses would be dubbed a) a cost facility b) an invest center. C) a profit center d) residual income. 16. When computer ROl, tunover is figured out by separating average operation assets into: a) invest capital. B) full assets c) net operating income. D) sales. 17. Commodities A. B, and C are created from a single raw material input. The life material costs $90,000, native which 5,000 systems of A, 10,000 devices of B, and also 15,000 units of C have the right to be produced each period. Product A can be sold at the split-off suggest for $2 per unit, or it can be processed further at a expense of $12500 and then sold for $5 per unit. Product A must be: a) offered at the split-off point, since further processing would result in a loss of $0.50 every unit b) handle further, because this will rise profits by $2,500 each period. C) marketed at the split-off point, because further processing will an outcome in a lose of $2,500 each period. D) processed further, due to the fact that this will boost profits by $12,500 each period. 18. Which of the following is no a component of the ROl calculation? a) Sales b) Average complete liabilities c) Operating earnings d) median operating heritage 19. Division B had an ROI critical year the 15% The division's minimum compelled rate that return is 10%. If the division's median operating assets critical year were $450,000, then the division's residual revenue for last year was: a) $67,500. B) $22,500. C) $37,500. D) S45,000.