Devry ACCT 244 Week 1 Homework Latest

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Devry ACCT 244 Week 1 Homework Latest

(TCO 3) Which of the following activities would NOT be considered a value-added activity?

Production

Marketing

Accounting

Distribution

:

Question 2. Question :

(TCO 3) The continual process of measuring a company’s own products, services, or activities against competitors’ performances is called:

performance measure.

benchmarking.

budgeting.

responsibility center.

lean accounting.

Question 3. Question :

(TCO 3) The field of accounting that depends on generally accepted accounting principles (GAAP) is called:

cost accounting.

financial accounting.

managerial accounting.

responsibility accounting.

international accounting.

Question 4. Question :

(TCO 3) MoreForLess Company had revenues of $2,000,000 while costs were $1,500,000. In the next year, MoreForLess will be introducing a new product line that will generate $200,000 in sales revenues and $160,000 in costs. Assuming no changes are expected for the other products, the differential operating profit for the next year is:

$540,000.

$200,000.

$160,000.

Question 5. Question :

(TCO 3) Jay’s Limo Service provides transportation services in and around Centerville. Its profits have been declining, and management is planning to add a package delivery service that is expected to increase revenue by $300,000 per year. The total cost to lease additional delivery vehicles from the local dealer is $70,000 per year. The present manager will continue to supervise all services. Due to expansion, however, the labor costs and utilities will increase by 40%. Rent and other costs will increase by 20%.

Jay’s Limo Service

Annual Income Statement

Before Expansion

Sales revenue

$980,000

Costs:

Vehicle leases

420,000

Labor

300,000

Utilities

60,000

Rent

80,000

Other costs

70,000

Manager’s salary

110,000

Total costs

$1,040,000

Operating profit (loss)

$(60,000)

What are the total differential costs that will incur as a result of the expansion?

$70,000

$214,000

$230,000

$244,000

 

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Devry ACCT 244 Week 1 Homework Latest

Best Devry ACCT 244 Week 1 Homework Latest

Devry ACCT 244 Week 1 Homework Latest