ProPrinters Uses Part 87A in the Production of Colour Printers

question 14

Multiple Choice

ProPrinters uses part 87A in the production of colour printers. Unit manufacturing costs of part 87A are as follows:
ProPrinters uses 100,000 units of 87A per year. Printers R Us has offered to sell ProPrinters 100,000 units of 87A per year for $12. Fixed overhead is unavoidable. $\begin{array}{lr}\text { Direct materials } & \$ 8 \\\text { Direct labour } & 2 \\\text { Variable overhead } & 1 \\\text { Fixed overhead } & 4\end{array}$
-Refer to the Figure.Which of the following is a qualitative factor that would NOT affect ProPrinters'decision?

• A)Making the product in-house would allow ProPrinters to focus on the remaining labourers in the company
• B)Ordering from Printers R Us would give ProPrinters a chance to see how well Printers R Us could meet JIT standards for ProPrinters' other products.
• C)Printers R US is known for the reliability of its products.
• D)Making the part in-house would help ProPrinters avoid layoffs of direct and indirect labour.

Identify the key adopters of the Principles for Responsible Investment and their importance.

Understand the categories of environmental performance indicators under the GRI framework.

Understand the potential impact of climate change on financial accounting practices.

Understand the concept of the Capital Allocation Line (CAL) and calculate its slope.

---

Definitions:

Future Enacted Tax Rates

Tax rates that have been passed into law but will go into effect at a future date, relevant for financial planning and reporting.

Asset/Liability Method

A method used in accounting to adjust the books for tax purposes, balancing the future tax benefits of assets against the future tax obligations of liabilities.

Accelerated Cost Recovery

A method of depreciation used for tax purposes that allows for higher deductions in the early years of an asset's life.

Straight-Line Depreciation

Straight-Line Depreciation is a method where the cost of a tangible asset is reduced evenly over its useful life.