Answer the Following Questions Using the Information Below

question 126

Multiple Choice

Answer the following questions using the information below:
Cysco Corp has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $100,000 in variable costs. The new method will require $50,000 in training costs and $140,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 200,000 units.
Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $30 per failed unit of finished goods. The internal failure rate is expected to be 5% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $50 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories.
-How much will appraisal costs change assuming that the new prevention methods reduce material failures by 30% in the appraisal phase?

• A) $150,000 decrease
• B) $229,000 decrease
• C) $50,000 increase
• D) $50,000 decrease

Apply knowledge of the nervous system to explain human behaviors and disorders related to brain function.

Evaluate different methods used to study brain function and their contributions to our understanding of psychology.

Understand the basic structure and functions of various parts of the limbic system.

Grasp the impact of substances on neurotransmission and their psychological effects.

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Definitions:

Financial Manager

A professional responsible for managing a company's financial health by developing strategies, planning, and overseeing investment activities.

Cash Collections

The process of gathering and managing incoming cash payments from customers or clients.

Sales

The activities involved in selling goods or services to customers for revenue.