new customer approaching me and asks me to producean extra set of furniture. She offers to pay me themarket price of $1,000. To consider whether to take thiscustomer or not, which cost, AC or MC, should I refer to?14

produce 100 units of outputs (say, furniture). The priceof my product is $1,000. If I want to know whether myproduction is profitable or not, which cost, AC or MC,should I refer to?

Multiple Choice QuestionA company currently makes a component used in production. The per unit costs incurred to make the component include: Direct materials: $5; Direct labor: $2; Overhead: $4; Total cost: $11. Twenty-five percent of the overhead costs are considered incremental. The company can purchase the component from another source for $10. The company should do which of the following?Multiple choice question.The company can be indifferent because incremental costs are $10 and the purchase price is $10.The company should buy the components to save $2 per unit.The company should make the components because incremental costs are $2 less than the purchase price.The company should buy the components to save $1 per unit.

A manufacturing company produces Product P, which has the following cost components per unit:Direct materials: $15Direct labor: $8Direct expenses: $5Variable production overhead: $6Variable selling expense: $7Fixed production overhead: $10Calculate the inventory valuations for Product P according to marginal costing and absorption costing.Question 2Answera.MC: $51 and AC: $44b.MC: $41 and AC: $44c.MC: $34 and AC: $44d.MC: $34 and AC: $51

Multiple Choice QuestionCustomer benefits subtracted by customer costs = customer _____.Multiple choice question.exchangesatisfactionvalueprice

Which of these are tangible assets? (Check all that apply.)Multiple select question.furniturecomputerscopyrightdelivery equipmentaccounts receivable