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Question 6/152
The sales manager for a builder of custom yachts developed the following conditional table for annual production and sales:
According to the table, how many yachts should be built?
According to the table, how many yachts should be built?
Correct Answer: C
To achieve the maximum expected profit, 30 yachts should be built. For each level of production, multiply the probability of demand by the expected profit. The computation for the maximum is: 0.1(-US $10) + 0.2($10) + 0.5($30) + 0.2($30) = US $22.
- Question List (152q)
- Question 1: A perpetual inventory system uses a minimum quantity on hand...
- Question 2: The Huron Corporation purchases 60,000 headbands per year. T...
- Question 3: A cost-volume-profit model developed in a dynamic environmen...
- Question 4: A cash flow hedge mitigates risk exposure due to variability...
- Question 5: Which stage in the industry life cycle is characterized by m...
- Question 6: The sales manager for a builder of custom yachts developed t...
- Question 7: With regard to e-commerce, risk is best defined as the uncer...
- Question 8: Which of the following principles are common to both hierarc...
- Question 9: At December 31, Year 1, an entity had the following equity a...
- Question 10: All of the following are true with regard to the first-in, f...
- Question 11: Which of the following are the most appropriate measures for...
- Question 12: Annual inventory holding costs equal:...
- Question 13: Which of the following techniques would be best for evaluati...
- Question 14: Market-skimming pricing strategies could be appropriate when...
- Question 15: Based on a comparison of RST's quick ratios in Year 5 and Ye...
- Question 16: Quality control programs employ many tools for problem defin...
- Question 17: The current generation of ERP software ERP II) may include a...
- Question 18: Total quality management (TQM) in a manufacturing environmen...
- 1 commentQuestion 19: An entity has the following contingencies at a balance sheet...
- Question 20: While auditing a marketing department, the internal auditor ...
- 1 commentQuestion 21: Which of the following is most important for an internal aud...
- Question 22: An entity uses the retail method of inventory estimation for...
- Question 23: The chart displays the:
- Question 24: Which of the following describes the most appropriate set of...
- Question 25: Dale has 20 days to complete production of an order for an i...
- Question 26: The leadership of an organization encourages employees to fo...
- Question 27: The average labor cost per unit for the first batch produced...
- Question 28: The share split proposal will <List A> earnings per sh...
- Question 29: In a traditional manufacturing operation, direct costs would...
- Question 30: If a call option is out-of-the-money, the:...
- Question 31: Which of the following statements is true regarding a bring-...
- Question 32: A competitive marketing strategy in which a firm specializes...
- Question 33: An example of an internal nonfinancial benchmark is:...
- Question 34: Which of the following conditions could lead an organization...
- Question 35: Organization X owns a 38 percent equity stake in Organizatio...
- Question 36: A company uses a target pricing and costing approach. The fo...
- Question 37: According to MA guidance on IT. which of the following best ...
- Question 38: During the past few gears, Wilder Company has experienced th...
- Question 39: Which of the following application software features is the ...
- Question 40: The drive-through service at a fast-food restaurant consists...
- Question 41: Which of the following assists in ensuring mat information e...
- Question 42: Which of me following is true of matrix organizations?...
- Question 43: Management of a bookkeeping company observed that the averag...
- Question 44: An audit manager has just returned from an executive trainin...
- Question 45: Assume that the average collection period is 25 days. After ...
- Question 46: The economic order quantity for inventory is higher for an o...
- Question 47: Which of the following budgets must be prepared first?...
- Question 48: A bank uses customer departmentalization to categorize its d...
- Question 49: An entity is subject to warranty claims. A reliable estimate...
- Question 50: At the end of September, a entity has outstanding accounts r...
- Question 51: Which of the following is not true of responsibility account...
- Question 52: A bank is developing a computer system to help evaluate loan...
- Question 53: Which of the following statements pertaining to a market ski...
- Question 54: A client installed the most sophisticated controls using bio...
- Question 55: The primary reason for adopting TOM was to achieve:...
- Question 56: Which line segment identifies the quantity of safety stock m...
- Question 57: Maintenance cost at a hospital was observed to increase as a...
- Question 58: How do data analysis technologies affect internal audit test...
- Question 59: A company is formulating its plans for the coming year, incl...
- Question 60: If Bandit Co. reports expenses on an accrual basis, interest...
- Question 61: The process of scenario planning begins with which of the fo...
- Question 62: When comparing absorption costing with variable costing, whi...
- Question 63: Tie-in sales e.g., the sale of camera and film together) mos...
- Question 64: The process of scenario planning begins with which of the fo...
- Question 65: Which of the following is a logical access control designed ...
- Question 66: An internal auditor observed that the organization's disaste...
- Question 67: Which of the following is true about the impact of price inf...
- Question 68: If a company is customer-centered, its customers are defined...
- Question 69: The ending inventory balance under the first-in, first-out-F...
- Question 70: An entity has a majority of its customers located in states ...
- 2 commentQuestion 71: Which of the following is a noncash item?...
- Question 72: If legal or regulatory standards prohibit conformance with c...
- 1 commentQuestion 73: Which of the following is most important for an internal aud...
- Question 74: Which of the following is a disadvantage in a centralized or...
- Question 75: Which of the following is not true about international trans...
- Question 76: According to the waterfall cycle approach to systems develop...
- Question 77: Which of the following IT controls includes protection for m...
- Question 78: Which of the following options correctly defines a transmiss...
- Question 79: Refer to the exhibit. (Exhibit) The figure below shows the n...
- Question 80: Which of the following statements is most accurate with resp...
- Question 81: An entity obtained a short-term bank loan of US $250,000 at ...
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- Question 83: Which of the following characteristics distinguishes compute...
- Question 84: Which of the following statements is true regarding outsourc...
- Question 85: Correlation is a term frequently used in conjunction with re...
- Question 86: An organization produces two products, X and Y. The material...
- Question 87: Which of the following methods, if used in conjunction with ...
- Question 88: Which of the following are included in ISO 31000 risk princi...
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- Question 90: The immediate goal of a theory of constraints (TOC) analysis...
- Question 91: A systems development approach used to quickly produce a mod...
- Question 92: Which of the following is the primary benefit of including e...
- Question 93: The calculation of an economic order quantity EOQ) considers...
- Question 94: At December 31, Year 2, an entity had the following obligati...
- Question 95: An organization accumulated the following data for the prior...
- Question 96: A U.S. company and a European company purchased the same sto...
- Question 97: IFPS 2, Share-Based payment, normally requires entities to a...
- Question 98: The amortization of intangible assets with finite useful liv...
- Question 99: The defined post employment benefit obligation of an entity ...
- Question 100: Organizations mat adopt just-in-time purchasing systems ofte...
- Question 101: The decision to implement enhanced failure detection and bac...
- Question 102: The credit instrument known as a banker's acceptance:...
- Question 103: A bank is designing an on-the-job training program for its b...
- Question 104: Which of the following statements is false regarding the eff...
- 1 commentQuestion 105: Which of the following authentication device credentials is ...
- 1 commentQuestion 106: An internal auditor was asked to review an equal equity part...
- Question 107: An internal auditor is reviewing physical and environmental ...
- Question 108: Violation of which assumption underlying regression analysis...
- Question 109: To mitigate a possible loss and offset risk, an entity can u...
- Question 110: When auditing an application change control process, which o...
- Question 111: Refer to the exhibit. If the profit margin of an organizatio...
- Question 112: Fulford Company applies the target pricing and costing appro...
- Question 113: According to MA guidance, which of the following best descri...
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- 1 commentQuestion 120: Which of me following responsibilities would ordinary fall u...
- Question 121: In a business combination, the sum of the amounts assigned b...
- Question 122: Changes in accounting estimates are viewed as:...
- Question 123: Presented below are partial year-end financial statement dat...
- Question 124: If Projects A and B. are independent, which of the following...
- Question 125: If legal or regulatory standards prohibit conformance with c...
- Question 126: The costs of quality that are incurred in detecting units of...
- Question 127: Using an EOQ analysis (assuming a constant demand), it is de...
- Question 128: Only two companies manufacture Product A. The finished produ...
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- Question 130: An entity changes its method of accounting for depreciation ...
- Question 131: Which of the following statements is true regarding reversin...
- Question 132: Senior management has decided to implement the Three Lines o...
- Question 133: At the beginning of Year 1 a company began work on a 3-year ...
- Question 134: In an inventory system on a database management system DBMS)...
- Question 135: What is the economic term used to describe the situation in ...
- Question 136: A characteristic of the basic economic order quantity EOQ) m...
- 1 commentQuestion 137: Which of me following statements is true regarding the repor...
- Question 138: Heniser Pet Foods manufactures two products, X. and Y. The u...
- Question 139: A company purchased a new machine on an installment payment ...
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- Question 141: A company has excess capacity in production-related fixed as...
- Question 142: Which of the following describes a typical desktop workstati...
- Question 143: Which of the following is a strategy that organizations can ...
- Question 144: Which of the following concepts of managerial accounting is ...
- Question 145: During the growth stage of a product's life cycle,...
- Question 146: Which of the following performance measures would be appropr...
- Question 147: Evaluating performance is not done to:...
- Question 148: An accounts payable program posted a payable to a vendor not...
- Question 149: The comparative balance sheet for an enterprise that had pro...
- Question 150: Quality cost indices are often used to measure and analyze t...
- Question 151: Business process reengineering is most likely to:...
- Question 152: Data access security related to applications may be enforced...
