1.Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?
- Fixed cost within relevant range
- Variable
- Mixed
- Variable cost within relevant range
2.Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms?
- Quantitative analysis
- Account analysis
- Conference
- Industrial engineering
3.Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available?
- Yes, since operating profits will most likely increase.
- No, since only the employees will benefit.
- No, the company will only break even.
- Yes, good customer relations are essential.