Accounting 231 Exam 4 Holbrook WSU
Question and answers 100% correct ||
LATEST UPDATE 2026
differential cost -CORRECTANSWER A future cost that differs between any two
alternatives
differential revenue -CORRECTANSWER future revenue that differs between any two
alternatives
incremental cost -CORRECTANSWER an increase in cost between two alternatives
avoidable cost -CORRECTANSWER a cost that can be eliminated by choosing one
alternative over another
opportunity cost -CORRECTANSWER benefit that is foregone as a result of pursuing
some course of action
Special Order -CORRECTANSWER one-time order that is not considered part of the
company's normal ongoing business
Only the incremental costs and benefits are relevant
, vertical integration -CORRECTANSWER When a company is involved in more than one
activity in the entire value chain
volume trade-off decisions -CORRECTANSWER when they do not have enough
capacity to produce all of the products and sales volumes demanded by their customers
Constraint -CORRECTANSWER When a limited resource of some type restricts the
company's ability to satisfy demand
Bottleneck -CORRECTANSWER The machine or process that is limiting overall output
Capital Budgeting -CORRECTANSWER 1. Screening Decisions: Does a proposed
project meet some preset standard of acceptance?
2. Preference decisions: Selecting from among several competing courses of action.
Typical Cash Outflows -CORRECTANSWER repairs and maintenance, initial
investment, incremental operating costs, working capital(Current Assets-Current
Liabilities)
Typical Cash Inflows -CORRECTANSWER salvage value, reduction of costs,
incremental revenues, release of working capital
Question and answers 100% correct ||
LATEST UPDATE 2026
differential cost -CORRECTANSWER A future cost that differs between any two
alternatives
differential revenue -CORRECTANSWER future revenue that differs between any two
alternatives
incremental cost -CORRECTANSWER an increase in cost between two alternatives
avoidable cost -CORRECTANSWER a cost that can be eliminated by choosing one
alternative over another
opportunity cost -CORRECTANSWER benefit that is foregone as a result of pursuing
some course of action
Special Order -CORRECTANSWER one-time order that is not considered part of the
company's normal ongoing business
Only the incremental costs and benefits are relevant
, vertical integration -CORRECTANSWER When a company is involved in more than one
activity in the entire value chain
volume trade-off decisions -CORRECTANSWER when they do not have enough
capacity to produce all of the products and sales volumes demanded by their customers
Constraint -CORRECTANSWER When a limited resource of some type restricts the
company's ability to satisfy demand
Bottleneck -CORRECTANSWER The machine or process that is limiting overall output
Capital Budgeting -CORRECTANSWER 1. Screening Decisions: Does a proposed
project meet some preset standard of acceptance?
2. Preference decisions: Selecting from among several competing courses of action.
Typical Cash Outflows -CORRECTANSWER repairs and maintenance, initial
investment, incremental operating costs, working capital(Current Assets-Current
Liabilities)
Typical Cash Inflows -CORRECTANSWER salvage value, reduction of costs,
incremental revenues, release of working capital
