Answer the Following Question(s)using the Information Below

question 133

Multiple Choice

Answer the following question(s) using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n)

• A)qualitative factor.
• B)relevant cost.
• C)differential factor.
• D)opportunity cost.
• E)quantitative factor.

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Definitions:

Factory Overhead Cost Variance Report

Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.

Standard Factory Overhead Cost

The predetermined estimate of indirect manufacturing costs that are expected to be incurred during a period.

Presentation Means

The methods or techniques used to display or convey information, ideas, or data to an audience.

Finished Goods Account

An account representing the total cost of manufactured goods that are completed and ready for sale.