ACC 241 Exam 3 ASU Dallmus questions with answers.

ACC 241 Exam 3 ASU Dallmus questions with
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answers


relevant costs - CORRECT ANSWERS ✔✔Relevant costs
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are costs that differ between alternatives.When making
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the decision, the company should consider relevant costs.
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Relevant costs are also called differential costs,
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incremental costs, or avoidable costs. |\ |\ |\ |\




Analyzing special orders - CORRECT ANSWERS ✔✔- |\ |\ |\ |\ |\ |\



Whether excess capacity exists |\ |\ |\




-Whether the special order will affect regular sales in the
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long run |\




-Whether the special price will be high enough to cover
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incremental costs of filling the order |\ |\ |\ |\ |\




product pricing - CORRECT ANSWERS ✔✔When an item
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first comes on the market it is generally higher than when
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it's been on the market for a while
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(cost plus, target costing)
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How to analyze dropping a product line decision? -
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CORRECT ANSWERS ✔✔A company should drop the |\ |\ |\ |\ |\ |\ |\

, product line only if avoidable cost savings are greater
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than the contribution margin lost.
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Make versus Buy decisions - CORRECT ANSWERS
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✔✔Decisions involve deciding whether to perform a |\ |\ |\ |\ |\ |\ |\



particular function in-house versus buying it from and |\ |\ |\ |\ |\ |\ |\ |\



outside supplier |\




- If the incremental costs of making exceed the
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incremental costs of buying, then the company should |\ |\ |\ |\ |\ |\ |\ |\



buy it. |\




Sell as is or process further decisions - CORRECT
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ANSWERS ✔✔For sell as is or process further decisions, if |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



the incremental revenue from processing further exceeds
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the incremental cost of processing further, then the
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correct decision is to process further. |\ |\ |\ |\ |\




master budget - CORRECT ANSWERS ✔✔A comprehensive
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financial plan consisting of various individual budgets;
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done at the beginning of a period |\ |\ |\ |\ |\ |\




Benefits of Budgeting - CORRECT ANSWERS ✔✔1. Forces |\ |\ |\ |\ |\ |\ |\ |\



managers to plan |\ |\




2. Facilitates coordination and communication within the
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business