Answer the Following Question(s)using the Information Below

question 115

Multiple Choice

Answer the following question(s) using the information below.Munoz Inc.produces a special line of plastic toy racing cars in batches.To manufacture a batch of the cars Munoz Inc.must setup the machines and molds.Setup costs are batch-level costs because they are associated with batches rather than individual units of products.A separate Setup Department is responsible for setting up machines and molds for different styles of car.Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup hours.The following information pertains to June 2012:

-Calculate the production-volume variance for fixed setup overhead costs.

• A)$4,666.67 unfavourable
• B)$400 unfavourable
• C)$1,600 unfavourable
• D)$4,666.67 favourable
• E)$400 favourable

Explain the dynamics of complex and dynamic environments and their impact on organizational strategy.

Understand how legal regulations form part of the environmental components organizations face.

Describe how managerial perception influences the strategy formulation process.

Analyze the significance of the perceived environment in strategy formulation and implementation.

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Definitions:

Comprehensive Income

Comprehensive Income includes all changes in equity of a company during a period from transactions and other events, excluding transactions with owners.

Call Option

A financial contract giving the holder the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a specified time frame.

Cash Flow Hedge

A financial strategy used to manage risks associated with fluctuations in cash flows by using a hedge instrument to offset potential losses or gains.

Spot Exchange Rates

The present rate at which one currency is traded for another with immediate effect.