We bought a machine and will make equal annual payments of $$1,000$ each year for $6$ years. The cost $($present value$)$ of the machine is:

A$.$ $$6,000$

B$.$ More than $$6,000$

C$.$ Less than $$6,000$

D$.$ Need more info

We have $$20,000$ in an interest$-$bearing savings account. We plan to withdraw the same amount each year for the next $4$ years to deplete the account. The amount of each withdrawal will be:

A$.$ $$5,000$

B$.$ More than $$5,000$

C$.$ Less than $$5,000$

D$.$ Need more info

When calculating the Flexible Budget, you should use:

A$.$ Budgeted output quantity

B$.$ Actual output quantity

In a Job Order Cost System, the journal entry with a debit to Finished Goods and credit to Work in Process has what amount?

A$.$ CGM

B$.$ CGS

C$.$ Total Manufacturing Cost

D$.$ Total Direct Materials Cost

In a Job Order Cost System, the journal entry with a debit to Cost of Goods Sold and credit to Finished Goods has what amount?

A$.$ CGM

B$.$ CGS

C$.$ Total Manufacturing Cost

D$.$ Total Direct Materials Cost

In order to refine a Costing System, you should:

A$.$ Use Activity Based Costing

B$.$ Use several indirect cost pools

C$.$ Identify as many direct costs as is feasible

D$.$ All of the above

What is the general rule indicating we should shut down our operations?

A$.$ Contribution Margin $<mn\; id="EditorElement\_372545">0</mn>$

B$.$ Contribution Margin $>0$

C$.$ Operating Income $<mn\; id="EditorElement\_372476">0</mn>$

D$.$ Operating Income $$ Target Operating Income

If a new customer brings us a special order, asking for a price less than our normal price, then as long as our Operating Income will increase, we should accept the special order.

A$.$ True

B$.$ False

We can manufacture two products, $xx$ and $ZZ.$ There is unlimited demand for both products. We operate one $8-$hour shift per day. The following information was available:

Selling price per unit Variable cost per unit Total fixed costs $$18,000$

If it takes $10$ minutes to produce one $xx$ or one $ZZ,$ we should produce and sell:

A$.$ Only XX

B$.$ Only ZZ

C$.$ Equal number of $xx$ and $ZZ$

D$.$ Depends on how fixed costs are allocated

$($From the previous problem$)$ If it takes twice as long to make a unit of $xx$ than a unit of $ZZ,$ we should produce and sell:

A$.$ Only XX

B$.$ Only ZZ

C$.$ Twice as many $xx$ as $ZZ$

D$.$ Twice as many $ZZ$ as $xx$