Please complete 60 question multiple choice Accounting II final exam. ATTACHMENT PREVIEW Download attachment ACC II Final Exam.docx 1) The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is product cost differential cost period cost discretionary cost 2) Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $20, including fixed costs, and $11, not including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? $150,000 cost increase $120,000 cost increase $120,000 cost decrease $150,000 cost increase 3) Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $55 per pound and would require an additional cost of $31 per pound to produce. What is the differential cost of producing Product C? $28 per pound $31 per pound $30 per pound $55 per pound 4) Lara Technologies is considering a cash outlay of $250,000 for the purchase of land, which it could lease out for $35,000 per year. If alternative investments are available that yield a 12% return, the opportunity cost of the purchase of the land is $30,000 $4,200 $250,000 $35,000 5) Delaney Company is considering replacing equipment which originally cost $600,000 and which has $420,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. What is the sunk cost in this situation? $180,000 $172,000 $290,000 $188,000 6) Falcon Co. produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $19.00 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units with a special price of $20.00 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $1.00 per unit would be eliminated. If the order is accepted, what would be the impact on net income? a.decrease of $750 b.increase of $1,500 c.increase of $3,000 d.decrease of $4,500 7) Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation? variable costs are more than revenues losses are minimal allocated fixed costs are more than revenues variable costs are less than revenues 8) Which of the following would be considered a sunk cost? equipment rental for the production area net book value of equipment that has no market value warehouse lease expense purchase price of new equipment 9) The condensed income statement for a Hayden Corp. for the past year is as follows: Sales Costs: Variable costs Fixed costs Total costs Income (loss) Product T U $680,000 $320,000 $540,000 145,000 $685,000 $ (5,000) $ 220,000 40,000 $260,000 $ 60,000 Management is considering the discontinuance of the manufacture and sale of Product T at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Product U. What is the amount of change in net income for the current year that will result from the discontinuance of Product T? a.$5,000 increase b.$140,000 increase c.$5,000 decrease d.$140,000 decrease 10) Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. What is the differential revenue of