ACCT 4210

Georgia State University

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ACCT 4210 Cost Accounting: A Managerial Emphasis CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION QUESTIONS AND ANSWERS
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20

July 2021

2020/2021

A+
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-16 (20 min.) Disposal of assets. Answer the following questions. 1. A company has an inventory of 1,250 assorted parts for a line of missiles that has been discontinued. The inventory cost is $76,000. The parts can be either (a) remachined at total additional costs of $26,500 and then sold for $33,500 or (b) sold as scrap for $2,500. Which action is more profitable? Show your calculations. 2. A truck, costing $100,500 and uninsured, ...
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