Emory University Operations And Supply Chain Management Assignment Help - salvage value

Question - 11. (TCO 6) Cleaners, Inc. is considering purchasing equipment costing $30,000 with a six-year
useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over
its useful life with no salvage value. Cleaners requires a 10% rate of return. What is the approximate
net present value of this investment? (Points : 5)
$13,800
$1,794
$886
$2,748


12. (TCO 7) Which of the following would not appear as a fixed expense on a selling and
administrative expense budget? (Points : 5)
Freight-out
Office salaries
Property taxes
Depreciation


13. (TCO 7) If the required materials to be purchased are 18,000 pounds, the production needs are
three times the direct materials purchases, and the beginni ...Read More ng direct materials are three and a half
times the direct materials purchases, what are the desired ending direct materials in pounds? (Points :
5)
45,000
9,000
27,000
18,000


14. (TCO 8) Standards that are based on efficient activity with allowances for unavoidable losses are
called _______ (Points : 5)
basic standards.
maximum efficiency standards.
currently attainable standards.
expected standards.


15. (TCO 9) A static budget _____________. (Points : 5)
should not be prepared in a company
is useful in evaluating a manager's performance by comparing actual variable costs and planned
variable costs
shows planned results at the original budgeted activity level
is changed only if the actual level of activity is different than originally budgeted


16. (TCO 9) If costs are not responsive to changes in activity level, how are they best described?
(Points : 5)

Mixed
Flexible
Variable
Fixed


17. (TCO 9) Using the high-low method, what is the fixed cost for the following information?
Month
Miles
Total Cost

January
80,000
$96,000

February
50,000
$80,000

March
70,000
$94,000

April
90,000
$130,000

(Points : 5)
$17,500
$36,000
$14,000
$50,000


18. (TCO 10) Which of the following statements regarding budget reports is incorrect? (Points : 5)
The cost of budget reports should not outweigh the benefits.
Budget reports are used for planning, control, and information.
Reports prepared for upper management typically have fewer details than reports prepared for lower-
level managers.
Reports are prepared more frequently for upper management than for lower-level managers. ...Read Less

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