Budgeting and Analysis, Accounting

Question: Three of the steps in management decision process are: (1) Review result of decision. (2) Develop data relevant to each course of action. (3) Make the decision . The steps are prepared in the following order:
A
(1), (2), (3)

B
(3), (2), (1)

C
(2), (1), (3)

D
(2), (3), (1)

Note: Not available
1. Report
Question: Incremental analysis is the process of identifying the financial data this:
A
do not change under alternative courses of actions.

B
change under alternative courses of action.

C
are mixed under alternative courses of action.

D
None

Note: Not available
1. Report
Question: It costs a company $14 of variable costs and $6 of fixed costs to produce product A that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capcity, net inocme will:
A
decrease $6,000.

B
increase $ 6,000.

C
increase $12,000

D
increase $9,000

Note: Not available
1. Report
Question: In a make-or-buy decision, relevant costs are:
A
manufacturing costs that will be saved.

B
the purchase price of the units.

C
opportunity costs.

D
All

Note: Not available
1. Report
Question: The decision rule in a sell-or-process-further decision is: Process further as long as the incremental revenue from process exceeds:
A
incremental processing costs.

B
variable processing costs.

C
fixed processing costs.

D
None

Note: Not available
1. Report
Question: In a decision to retain or replace equipment, the book value of the old equipment is a (n)
A
opportunity cost.

B
sunk cost.

C
incremental cost.

D
marginal cost.

Note: Not available
1. Report
Question: If an unprofitable segment is eliminated:
A
net income will always increase.

B
variable expense of the eliminated segment will have to be absorbed by other segments.

C
fixed expense allocated to the eliminated segment will have to be absorbed by other segments.

D
net income will always decrease.

Note: Not available
1. Report
Question: If the contribution margin per unit is $15 and it takes 3.0 machine hours to produce the unit, the contribution margin per unit limited resource is:
A
$25

B
$5

C
$45

D
None

Note: Not available
1. Report
Question: Which of the following is incorrect about the annual rate of return technique?
A
The calculation is simple.

B
The accounting terms used are familiar to management.

C
The timing of the cash inflows is not considered.

D
The time value of money is considered.

Note: Not available
1. Report
Question: A positive net present value means that the:
A
project's rate of return is less than the cutoff rate.

B
project's rate of return exeeds the required rate of return.

C
project rate of return equals the required rate of reutrn

D
project is unacceptable.

Note: Not available
1. Report

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Question: Three of the steps in management decision process are: (1) Review result of decision. (2) Develop data relevant to each course of action. (3) Make the decision . The steps are prepared in the following order:

Question: Incremental analysis is the process of identifying the financial data this:

Question: It costs a company $14 of variable costs and $6 of fixed costs to produce product A that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capcity, net inocme will:

Question: In a make-or-buy decision, relevant costs are:

Question: The decision rule in a sell-or-process-further decision is: Process further as long as the incremental revenue from process exceeds:

Question: In a decision to retain or replace equipment, the book value of the old equipment is a (n)

Question: If an unprofitable segment is eliminated:

Question: If the contribution margin per unit is $15 and it takes 3.0 machine hours to produce the unit, the contribution margin per unit limited resource is:

Question: Which of the following is incorrect about the annual rate of return technique?

Question: A positive net present value means that the: