A machine owned by a company has been idle for some months but could now be used on aone year contract which is under consideration. The net book value of the machine is $1,000.If not used on this contract, the machine could be sold now for a net amount of $1,200. Afteruse on the contract, the machine would have no saleable value and the cost of disposing of itin one year’s time would be $800.What is the total relevant cost of the machine to the contract?

1 .Park Co is developing a number of new products. New legislation means that one of theseproducts will not be viable unless additional expenditure, estimated at $450,000, isundertaken. This amount excludes $200,000 which is the estimate of the contribution whichwill be lost through the delay to another project due to the transfer of resources.To date $4·7 million has been spent on the project. It is estimated that before the change inlegislation, $2·1 million was required to bring the product to the launch stage.What is the sunk cost of the project?

A $200,000 B $450,000 C $2,100,000 D $4,700,000

题型: 单选题 提问时间: 2021-08-24

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2 .A machine is no longer used by a company. It could be sold now for net proceeds of $300.Its only other use is on a short-term contract which is under consideration. The variablerunning costs of the machine during the period of the contract would be $400. On completionof the contract the machine would have no realisable value and would cost $150 to dismantleand remove.What is the total relevant cost of using the machine on the contract?

A $450 B $550 C $700 D $850

题型: 单选题 提问时间: 2021-08-24

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3 .A company is evaluating a new contract which requires 400 kg of raw material M. It has 100kg of material M in inventory which were purchased recently. Since then the purchase priceof material M has risen by 4% to $52 per kg. Raw material M is used regularly by thecompany in normal production.What is the relevant cost of material M for the contract?

A $20,000 B $20,600 C $20,800 D $21,632

题型: 单选题 提问时间: 2021-08-24

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4 .Which of the following best describes the term “relevant cash flow”?

A The benefit which would have been obtained from the best alternative foregone B The difference in future operating cash flows resulting from a decision C A future cash flow which cannot be avoided D All cash flows, including financing cash flows, arising from a project

题型: 单选题 提问时间: 2021-08-24

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5 .

A $40,400 B $40,900 C $43,400 D $43,900

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7 .Mario operates a small business that makes pizzas and delivers them within a two-mile radius.The variable cost incurred to make and deliver one pizza is $2·15. The average price chargedis $6·50 per pizza, including delivery.Mario estimates the annual fixed costs of his business are $40,000, including salaries of$24,000.What is the breakeven number of pizzas per year for Mario’s business?

A 3,678 B 6,154 C 9,195 D 18,605

题型: 单选题 提问时间: 2021-08-24

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8 .

A 1,385 units B 4,688 units C 8,824 units D 10,000 units

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9 .Graytun Co has a production capacity of 280,000 units per annum. The budgeted salesvolume for the next year is 256,000 units and the break even volume is 167,000 units.What is the margin of safety ratio?

A 31·79% B 34·77% C 53·29% D 65·23%

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10 .Benown Co manufactures a single product which has a variable cost of $17 and currently sellsfor $30. The budgeted sales volume is 25,000 units per month and the budgeted fixed costsare $250,000 per month. The divisional manager is considering reducing the price to $27 tostimulate sales. He also wishes to increase the monthly profit by 10%.What volume of sales is required at the new selling price to increase profit by 10%?

A 19,559 B 32,250 C 33,250 D 43,250

题型: 单选题 提问时间: 2021-08-24

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