The New Managerial Accountant at the Recycle Shoppe Proposed a Method

question 5

Multiple Choice

The new managerial accountant at the Recycle Shoppe proposed a method to eliminate waste, recycle a variety of products to enhance sales, and generate profits. The operations manager attended a meeting with the creative manager and proposed that the staff recycle the wood out of the 1,000 old chairs in the warehouse and convert the wood backing into custom picture frames. The operations manager stated that the old wooden chairs in the basement are a fire hazard. The managerial accountant believes that the cost to convert the old wood into custom picture frames is $80,000. The managerial accountant forecasts earnings from the sale of the custom picture frames at $54,000. Compute the payback period, in years. Which of the following illuminates both internal and external costs to give the manager a complete set of information about how to generate cost-effective solutions to environmental and social concerns?

• A)1)68; internal costs
• B)2)48; external costs
• C)0)68; cost of goods sold
• D)1)48; life-cycle assessment

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Definitions:

Injury Resulting

Physical harm or damage to the body caused by external force or trauma, often leading to the need for medical intervention.

Inner City

A term often referring to the central area of a major city, typically characterized by high-density housing and infrastructure, often associated with social and economic challenges.

Abusive Partner

An individual in a relationship who engages in behaviors that physically, emotionally, or sexually harm their partner.

Assessment Question

A question designed to evaluate knowledge, skills, attitudes, or characteristics of an individual or group.