Most companies use the net book value, which means acquisition cost less accumulated depre

ciation of depreciable assets, to calculate average operating assets. With this approach, ROI does not grow automatically over time, rather it stays constant

提问人：网友loneboo 发布时间：2022-01-07

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第1题

What are the advantages of Vertical Integration? There may be more than one correct answer.

A、Business risk will be decreased.

B、An integrated company may be able to ensure a smoother flow of parts and materials for production than a nonintegrated company.

C、Some companies feel that they can control quality better by producing their own parts and materials.

D、Integrated companies realize profits from the parts and materials that they choose to make instead of buy.

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第2题

Which of the following is not true about joint costs?

A、The term joint cost is used to describe costs incurred up to the split-off point.

B、Joint costs are common costs incurred to simultaneously produce a variety of end products.

C、Joint costs are irrelevant in decisions regarding what to do with a product from the split-off point forward.

D、Joint costs should be allocated to end products for decision making purposes.

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第3题

Warson Ltd. is considering closing its Alberta division. Which of the following would not be relevant to the closure decision?

A、The salary of the branch manager to be transferred

B、Contribution margin on lost sales

C、Site cleanup costs

D、All variable costs

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第4题

The Carter Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total €90,000 per production run. The unit selling price for A is €4 and for B is €3.80 at the split-off point. However, B can be processed further at a total cost of €60,000 and then sold for €7.00 per unit. In a decision between selling B at the split-off point and processing B further, which of the following items is not relevant?

A、The €60,000 cost to process B beyond the split-off point

B、The portion of the €90,000 joint production cost allocated to B

C、The €3.80 unit sales price of B at the split-off point

D、The €7 unit selling price for B after further processing

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第5题

What qualitative factors should be considered in keep-or-drop decision? There may be more than one correct answer.

A、The impact on employee morale due to jobs lost

B、The impact on the company’s reputation because of the loss

C、The loss of customers who purchase more than one product and now will go to another supplier who can fill their complete order

D、The ability to use idle facilities

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