Blooms: Apply Difficulty: 1 Easy Gradable: automatic Learning Objective: 01-03 Explain how cost accounting information is used for decision making and performance evaluation in organizations. Topic: Cost Data for Managerial Decisions 85. Geno's Body Shop had sales revenues and operating costs in 2016 of $650,000 and $525,000, respectively. In 2017, Geno's plans to expand the services it provides to customers to include detailing services. Revenues are expected to increase by $85,000 and operating costs by $50,000 as a result of this expansion. Assuming that there are no changes to the existing body shop business, what is the amount of operating profits that are expected be earned in 2017? Total Revenues ($650,000 + $85,000) - Total Operating costs ($525,000 + $50,000) = Total operating profit = $160,000 AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Gradable: automatic Learning Objective: 01-03 Explain how cost accounting information is used for decision making and performance evaluation in organizations. Topic: Cost Data for Managerial Decisions
Blooms: Apply Difficulty: 1 Easy Gradable: automatic Learning Objective: 01-03 Explain how cost accounting information is used for decision making and performance evaluation in organizations. Topic: Cost Data for Managerial Decisions 85. Geno's Body Shop had sales revenues and operating costs in 2016 of $650,000 and $525,000, respectively. In 2017, Geno's plans to expand the services it provides to customers to include detailing services. Revenues are expected to increase by $85,000 and operating costs by $50,000 as a result of this expansion. Assuming that there are no changes to the existing body shop business, what is the amount of operating profits that are expected be earned in 2017? Total Revenues ($650,000 + $85,000) - Total Operating costs ($525,000 + $50,000) = Total operating profit = $160,000 AACSB: Analytical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Gradable: automatic Learning Objective: 01-03 Explain how cost accounting information is used for decision making and performance evaluation in organizations. Topic: Cost Data for Managerial Decisions
9781259565403_TestBank_TBChap001.docx