Accounting 526 Final Exam Questions
With Correct Answers
focuses on the effect of alternative courses of action on the relevant revenues
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and costs - CORRECT ANSWER✔✔-Incremental Analysis
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amount of increase or decrease in revenue expected from a course of action as
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compared with an alternative - CORRECT ANSWER✔✔-Relevant Revenue
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amount of increase or decrease in cost that is expected from a course of action as
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compared with an alternative - CORRECT ANSWER✔✔-Relevant Cost
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cost that have been incurred in the past and are not relevant to a decision -
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CORRECT ANSWER✔✔-Sunk Cost
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the benefit lost when choosing one course of action over another - CORRECT
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ANSWER✔✔-Opportunity Cost |
Estimating costs accurately at an early stage in the value chain is crucial to
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developing a profitable product. (True or False) - CORRECT ANSWER✔✔-TRUE
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With _______________ managers arrive at a selling price by looking to the
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market. - CORRECT ANSWER✔✔-Target Pricing
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, A computer system installed last year is an example of:
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a.) an avoidable cost
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b.) a relevant cost
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c.) a sunk cost
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d.) a differential cost - CORRECT ANSWER✔✔-c.) a sunk cost
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Employee morale at Dos Santos, Inc., is very high. This type of information is
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known as: |
a.) a qualitative factor
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b.) an opportunity cost
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c.) a differential factor
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d.) a quantitative factor - CORRECT ANSWER✔✔-a.) a qualitative factor
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Measuring customer profitability only by looking at whether the sales revenue a
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customer generates exceeds the cost of goods sold ignores what? - CORRECT
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ANSWER✔✔-it ignores all selling and administrative costs incurred to provide
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customer service and support
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Which of the following combinations results in relevant information?
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a.) occurs in the future and is unavoidable
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b.) occurs in the future and is avoidable
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c.) occurs in the past and is avoidable
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d.) occurs in the past and is unavoidable - CORRECT ANSWER✔✔-b.) occurs in the
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future and is avoidable
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With Correct Answers
focuses on the effect of alternative courses of action on the relevant revenues
| | | | | | | | | | | | |
and costs - CORRECT ANSWER✔✔-Incremental Analysis
| | | | |
amount of increase or decrease in revenue expected from a course of action as
| | | | | | | | | | | | | |
compared with an alternative - CORRECT ANSWER✔✔-Relevant Revenue
| | | | | | |
amount of increase or decrease in cost that is expected from a course of action as
| | | | | | | | | | | | | | |
compared with an alternative - CORRECT ANSWER✔✔-Relevant Cost
| | | | | | | |
cost that have been incurred in the past and are not relevant to a decision -
| | | | | | | | | | | | | | | |
CORRECT ANSWER✔✔-Sunk Cost
| |
the benefit lost when choosing one course of action over another - CORRECT
| | | | | | | | | | | | |
ANSWER✔✔-Opportunity Cost |
Estimating costs accurately at an early stage in the value chain is crucial to
| | | | | | | | | | | | | |
developing a profitable product. (True or False) - CORRECT ANSWER✔✔-TRUE
| | | | | | | | |
With _______________ managers arrive at a selling price by looking to the
| | | | | | | | | | | |
market. - CORRECT ANSWER✔✔-Target Pricing
| | | |
, A computer system installed last year is an example of:
| | | | | | | | |
a.) an avoidable cost
| | |
b.) a relevant cost
| | |
c.) a sunk cost
| | |
d.) a differential cost - CORRECT ANSWER✔✔-c.) a sunk cost
| | | | | | | | |
Employee morale at Dos Santos, Inc., is very high. This type of information is
| | | | | | | | | | | | | |
known as: |
a.) a qualitative factor
| | |
b.) an opportunity cost
| | |
c.) a differential factor
| | |
d.) a quantitative factor - CORRECT ANSWER✔✔-a.) a qualitative factor
| | | | | | | | |
Measuring customer profitability only by looking at whether the sales revenue a
| | | | | | | | | | | |
customer generates exceeds the cost of goods sold ignores what? - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-it ignores all selling and administrative costs incurred to provide
| | | | | | | | | |
customer service and support
| | |
Which of the following combinations results in relevant information?
| | | | | | | |
a.) occurs in the future and is unavoidable
| | | | | | |
b.) occurs in the future and is avoidable
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c.) occurs in the past and is avoidable
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d.) occurs in the past and is unavoidable - CORRECT ANSWER✔✔-b.) occurs in the
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future and is avoidable
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