ACC 310 Week 2
ACC 310 Week 2 Quiz
Assignments Special Orders. Complete Exercise 4-48 and submit to instructor. 4-48. Special Orders: Sherene Nili Required a Should Ms Nili take the order? Explain your answer. Required b What is the minimum price that Ms. Nili should accept to take the special order? Required c What are the other factors, if any, besides price that she should Consider?
Discussion Questions Question 4-23 One of your acquaintances notes, This whole subject of differential costing is easy; variable costs are the only costs that are relevant. How would you respond? Question 4-24 A manager in your organization just received a special order at a price that is below cost. The manager points to the document and says, These are the kinds of orders that will get you in trouble. Every sale must bear its share of the full costs of running the business. If we sell below our full cost, well be out of business in no time. What do you think of this remark?
Question 6-8 Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct. Do you agree? Why?
Question 6-14 What criteria are important in determining the choice of an allocation base?
Excerpt from file: Question614 Whatcriteriaareimportantindeterminingthechoiceofanallocationbase? Thetwomostimportantcriteriaindetermininganallocationbaseare(1)causalityand(2) measurability.Wewouldlikeanallocationbasethatcausescosts.Byhiswemean,isthiscost
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