1.) the method of evaluating financial data that change under

1.)  The method of evaluating financial data that change under different courses of action is called: 

  a. financial statement analysis.

  b. break-even analysis.

  c. incremental analysis.

  d. cost-benefit analysis.

 

2.)  Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unit sales price. Fixed manufacturing overhead costs are $100,000. The firm has a one-time opportunity to sell an additional 1,000 units at $60 each that would not affect its current sales. Assuming the company has sufficient capacity to produce the additional units, how would the acceptance of the special order affect net income? 

  a. income would decrease by $30,000.

  b. income would increase by $30,000.  

  c. income would increase by $140,000.

  d. income would increase by $40,000.

 

3.)  Opportunity costs are: 

  a. included in inventory.

  b. foregone benefits.

  c. sunk costs.

  d. included in cost of goods sold.

 

4.)  A sunk cost is a cost that: 

  a. has been incurred and cannot be eliminated.

  b. is never relevant in decision-making.

  c. is never a differential cost.

  d. all of these.

 

5.)  _____________ is a cost management technique in which the firm determines the required cost for a product or service in order to earn a desired profit when the marketplace establishes the product’s selling price: 

  a. relevant costing.

  b. product costing.

  c. differential costing.

  d. target costing.

 

6.)  ______________ can be measured as the income that could have been earned on an asset, based on the potential rate of return that is lost or sacrificed when one alternative use of the asset is chosen over another: 

  a. target cost.

  b. sunk cost.

  c. opportunity cost.

  d. allocated cost.

 

7.)  _____________ costs between two alternative projects are those that would result from selecting one alternative instead of the other: 

  a. allocated.

  b. differential.

  c. sunk.

  d. irrelevant.

 

8.)  Which of the following cost classifications would not be considered relevant in comparing decision alternatives? 

  a. opportunity cost.

  b. differential cost.

  c. sunk cost.

  d. none of these.

 

9.)  In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, which of the following costs will not be relevant? 

  a. direct labor.

  b. direct materials.

  c. variable manufacturing overhead.

  d. fixed manufacturing overhead that cannot be avoided.

 

10.)  A cost classified “for decision making purposes” would include: 

  a. period cost.

  b. opportunity cost.

  c. controllable cost.

  d. inventoriable cost.

 

11.)  Relevant costs in decision-making: 

  a. are future costs that represent differences between decision alternatives.

  b. result from past decisions.

  c. should not influence the decision.

  d. none of these.

 

12.)  If a cost is irrelevant to a decision, the cost could not be a: 

  a. fixed cost.

  b. sunk cost.

  c. differential cost.

  d. variable cost.

 

13.)  The potential rental value of space used in the manufacturing process: 

  a. is a variable production cost.

  b. is an unavoidable production cost.

  c. is a sunk production cost.

  d. is an opportunity cost if production is not outsourced.

 

14.)  Greenland Sports, Inc. has been asked to submit a bid to the National Hockey League on supplying 1,000 pairs of professional quality skates. The cost per pair of skates has been determined as follows: 

 

Direct Materials $80

Direct Labor 60

Variable overhead 30

Fixed overhead (allocated) 20

 

Other non-manufacturing costs associated with each pair of skates are:

 

Variable selling cost (commission) $25

Fixed selling and administrative cost 10

 

Assume the commission on the sale of skates to the National Hockey League would be reduced to $15 per pair and that available production capacity exists to produce the 1,000 pairs of skates, the lowest price the firm can bid is some price greater than: 

  a. $185. 

  b. $190.

  c. $215.

  d. $225.

 

15.)  The key to analyzing a sell as is or process further decision is to determine that: 

  a. opportunity costs exceed sunk costs.

  b. incremental revenues exceed incremental costs.

  c. differential costs do not exist.

  d. all allocated costs are included in the decision.

 

16.)  In a make or buy decision which of the following costs would be considered relevant? 

  a. avoidable costs.

  b. unavoidable costs.

  c. sunk costs.

  d. allocated costs

 

17.)  Which of the following qualitative factors favors the buy option in the make or buy decision? 

  a. production scheduling.

  b. utilization of idle capacity.

  c. ability to control quality.

  d. technical expertise of supplier.

 

18.)  Product Z sells for $18 per unit as is but if it is enhanced it can be sold for $24 per unit. The enhancement process will cost $50,000 for 10,000 units. If the 10,000 units of Product Z are sold as is without further processing, the company: 

  a. will incur an incremental profit of $10,000.

  b. will incur an opportunity cost of $10,000.

  c. will incur an incremental profit of $1 per unit.

  d. will incur an incremental loss of $6 per unit.

 

19.)  A(n) _____________ is the minimum cost that can be incurred, which when subtracted from the selling price, allows for a desired profit to be earned. 

  a. relevant cost.

  b. opportunity cost.

  c. incremental cost.

  d. target cost.

 

20.)  Product X sells for $80 per unit in the marketplace and ABC Company requires a 35% minimum profit margin on all product lines. In order to compete in this market, the target cost for Product X must be equal to or lower than: 

  a. $28

  b. $45

  c. $52 

  d. $80

 

21.)  Which of the following costs are not relevant in a decision to continue or discontinue a segment of the organization? 

  a. avoidable costs.

  b. unavoidable costs.

  c. opportunity costs.

  d. differential costs.

 

22.)  The decision to continue or discontinue a segment of the business should focus on: 

  a. sales minus total variable expenses and total fixed expenses.

  b. sales minus total variable expenses and avoidable fixed expenses of the segment.

  c. sales minus total variable expenses and allocated fixed expenses of the business.

  d. none of these.

 

23.)  The decision for solving production mix problems involving multiple products and scarce production resources should focus on: 

  a. gross profit of each product.

  b. sales price of each product.

  c. contribution margin per unit of scarce resource.

  d. contribution margin of each product.

 

24.)  XYZ Company produces three products: A, B, and C. Product A has a contribution margin of $20 and requires 1 hour of machine time. Product B has a contribution margin of $30 and requires 2 hours of machine time. Product C has a contribution margin of $36 and requires 1.5 hours of machine time. If machine hours are considered scarce, in what product mix order should XYZ Company schedule the production of Products A, B, and C for the available machine hours? 

  a. first A, then B, then C.

  b. first C, then A, then B.

  c. first C, then B, then A.

  d. first B, then C, then A.

 

25.)  A principal difference between operational budgeting and capital budgeting is the time frame of the budget. Because of this difference, capital budgeting: 

   a. is an activity that involves only the financial staff.

  b. is done on a rolling budget period basis.

  c. focuses on the present value of cash flows from investments.

  d. is concerned with a long-term net income forecast.

 

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.