Page |1
ACCT 2302 Exam #3 Questions and
Correct Answers/ Latest Update / Already
Graded
Which is the first step in the management decision-making process?
a) Identify the problem and assign responsibility.
b) Make a decision.
c) Determine and evaluate possible courses of action.
d) Review results of the decision.
Ans: a) Identify the problem and assign responsibility.
Which of the following will always be a relevant cost?
a) Fixed cost
b) Sunk cost
All rights reserved © 2025/ 2026 |
, Page |2
c) Variable cost
d) Opportunity cost
Ans: d) Opportunity cost
Costs that will differ between alternatives and influence the outcome
of a decision are
a) sunk costs.
b) relevant costs.
c) product costs.
d) unavoidable costs.
Ans: b) relavant costs.
Alvarez Company is considering the following alternatives:
All rights reserved © 2025/ 2026 |
, Page |3
Alternative A Alternative B
Revenues $50,000 $60,000
Variable costs 30,000 30,000
Fixed costs 10,000 16,000
What is the incremental profit?
a) $0
b) $6,000
c) $4,000
d) $10,000
Ans: c) $4,000
Which of the following is an irrelevant cost?
a) A sunk cost
All rights reserved © 2025/ 2026 |
, Page |4
b) An opportunity cost
c) An avoidable cost
d) An incremental cost
Ans: a) A sunk cost
Incremental analysis would be appropriate for
a) acceptance of an order at a special price.
b) a retain or replace equipment decision.
c) a sell or process further decision.
d) all of these answers are correct.
Ans: d) all of these answers are correct.
All rights reserved © 2025/ 2026 |
ACCT 2302 Exam #3 Questions and
Correct Answers/ Latest Update / Already
Graded
Which is the first step in the management decision-making process?
a) Identify the problem and assign responsibility.
b) Make a decision.
c) Determine and evaluate possible courses of action.
d) Review results of the decision.
Ans: a) Identify the problem and assign responsibility.
Which of the following will always be a relevant cost?
a) Fixed cost
b) Sunk cost
All rights reserved © 2025/ 2026 |
, Page |2
c) Variable cost
d) Opportunity cost
Ans: d) Opportunity cost
Costs that will differ between alternatives and influence the outcome
of a decision are
a) sunk costs.
b) relevant costs.
c) product costs.
d) unavoidable costs.
Ans: b) relavant costs.
Alvarez Company is considering the following alternatives:
All rights reserved © 2025/ 2026 |
, Page |3
Alternative A Alternative B
Revenues $50,000 $60,000
Variable costs 30,000 30,000
Fixed costs 10,000 16,000
What is the incremental profit?
a) $0
b) $6,000
c) $4,000
d) $10,000
Ans: c) $4,000
Which of the following is an irrelevant cost?
a) A sunk cost
All rights reserved © 2025/ 2026 |
, Page |4
b) An opportunity cost
c) An avoidable cost
d) An incremental cost
Ans: a) A sunk cost
Incremental analysis would be appropriate for
a) acceptance of an order at a special price.
b) a retain or replace equipment decision.
c) a sell or process further decision.
d) all of these answers are correct.
Ans: d) all of these answers are correct.
All rights reserved © 2025/ 2026 |
