Question: Hello professor, Can you help me with these multiples choice question? No explanation needed. Thank you for your help! Question 16 (1 point) 4) Listen

Hello professor, Can you help me with these multiples choice question? No explanation needed. Thank you for your help!

Question 16 (1 point)

4) Listen

In a make or buy decision, which of the costs below are relevant?

Fixed costs that will not change regardless of the decision.

Only conversion costs.

Fixed costs that can be avoided in the future if the decision is to buy.

Only direct material costs.

17. For what reason are the net present value and internal rate of return methods of capital budgeting superior to the

payback method?

Both the methods are easier to implement.

Both the methods consider the time value of money.

Both the methods require less input.

Both the methods reflect the effects of depreciation and income taxes.

Question 18 (1 point)

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Manor Company plans to discontinue a department that has a contribution margin of $24,000 and $48,000 in fixed costs. Of the fixed costs, $21,000 cannot be avoided. The effect of this discontinuance on Manor's overall net operating income would be a(an):

decrease of $3,000.

increase of $3,000.

decrease of $24,000.

increase of $24,000.

19. The performance of the manager of Division A is measured by residual income. Which of the following would increase the manager's performance measure?

Increase in average operating assets.

Decrease in average operating assets.

Increase in minimum required return.

Decrease in net operating income.

Question 20 (1 point)

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If a company follows a practice of isolating variances at the earliest point in time, what would be the appropriate time to isolate and recognize a direct material price variance?

When material is issued.

When material is purchased.

When material is used in production.

When production is completed.

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