ACCT 2101 Final Practice Questions
(LSU) QUESTIONS AND ANSWERS
RATED A+ 2025/2026
Three of the steps in management's decision-making process are (1) review the results of the
decision, (2) determine and evaluate possible courses of action, and (3) make the decision. The
steps are carried out in the following order:
a. (1), (2), (3).
b. (3), (2), (1).
c. (2), (1), (3).
d. (2), (3), (1). - ANS ✔✔Answer: d. (2), (3), (1)
Incremental analysis is the process of identifying the financial data that:
a. do not change under alternative courses of action.
b. change under alternative courses of action.
c. are mixed under alternative courses of action.
d. No correct answer is given. - ANS ✔✔Answer: b. change under alternative courses of action
In making business decisions, management ordinarily considers:
a. quantitative factors but not qualitative factors.
b. financial information only.
c. both financial and nonfinancial information.
d. relevant costs, opportunity costs, and sunk costs. - ANS ✔✔Answer: c. both financial and
nonfinancial information
Alternative A Alternative B
, Revenues $50,000 $50,000
Variable costs 24,000 24,000
Fixed costs 12,000 15,000
Which of the following are relevant in choosing between these alternatives?
a. Revenues, variable costs, and fixed costs.
b. Variable costs and fixed costs.
c. Variable costs only.
d. Fixed costs only. - ANS ✔✔Answer: d. fixed costs only
It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200, which
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 capacity, net income will:
a. decrease $6,000.
b. increase $6,000.
c. increase $12,000.
d. increase $9,000. - ANS ✔✔Answer: c. increase $12,000
If the special offer is accepted and produced with unused capacity, unit variable costs = $14 and
income per unit = ($18 − $14), so net income will increase by $12,000 (3,000 × $4)
It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product
Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur
special shipping costs of $5 per unit. If the special offer is accepted and produced with unused
capacity, net income will:
a. increase $3,000.
b. increase $12,000.
c. decrease $12,000.
(LSU) QUESTIONS AND ANSWERS
RATED A+ 2025/2026
Three of the steps in management's decision-making process are (1) review the results of the
decision, (2) determine and evaluate possible courses of action, and (3) make the decision. The
steps are carried out in the following order:
a. (1), (2), (3).
b. (3), (2), (1).
c. (2), (1), (3).
d. (2), (3), (1). - ANS ✔✔Answer: d. (2), (3), (1)
Incremental analysis is the process of identifying the financial data that:
a. do not change under alternative courses of action.
b. change under alternative courses of action.
c. are mixed under alternative courses of action.
d. No correct answer is given. - ANS ✔✔Answer: b. change under alternative courses of action
In making business decisions, management ordinarily considers:
a. quantitative factors but not qualitative factors.
b. financial information only.
c. both financial and nonfinancial information.
d. relevant costs, opportunity costs, and sunk costs. - ANS ✔✔Answer: c. both financial and
nonfinancial information
Alternative A Alternative B
, Revenues $50,000 $50,000
Variable costs 24,000 24,000
Fixed costs 12,000 15,000
Which of the following are relevant in choosing between these alternatives?
a. Revenues, variable costs, and fixed costs.
b. Variable costs and fixed costs.
c. Variable costs only.
d. Fixed costs only. - ANS ✔✔Answer: d. fixed costs only
It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200, which
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 capacity, net income will:
a. decrease $6,000.
b. increase $6,000.
c. increase $12,000.
d. increase $9,000. - ANS ✔✔Answer: c. increase $12,000
If the special offer is accepted and produced with unused capacity, unit variable costs = $14 and
income per unit = ($18 − $14), so net income will increase by $12,000 (3,000 × $4)
It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product
Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur
special shipping costs of $5 per unit. If the special offer is accepted and produced with unused
capacity, net income will:
a. increase $3,000.
b. increase $12,000.
c. decrease $12,000.
