The fixed costs that are traceable to the segments are called: common fixed cost
ID: 2490233 • Letter: T
Question
The fixed costs that are traceable to the segments are called:
common fixed costs.
unavoidable fixed costs.
direct fixed costs.
sunk costs.
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QUESTION 17
Omaha Inc. is expected to have the following cash revenues and expenses (other than depreciation) in 2014:
$92,000
$ 5,000
3,000
45,000
10,000
Omaha's estimated 2014 net cash flows are
$31,000.
$29,000.
$34,000.
$24,000.
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Qualitative factors used by decision makers include all of the following except
social issues.
tax implications.
timeliness.
competition.
Sales$92,000
Depreciation expense$ 5,000
Selling, general, and Income tax expense3,000
administrative expenses Cost of goods sold45,000
(excluding depreciation)10,000
Explanation / Answer
1.
Answer is “Direct fixed costs”.
2.
Net cash flows = Sales – Cost of goods sold - Selling, general and administrative expenses – Income tax expense = $92,000 - $45,000 - $10,000 - $3,000 = $34,000
Hence, Answer is $34,000
3.
Answer is “Tax implications”