ACG 2071 Final Exam Questions With Correct Answers

ACG 2071 Final Exam Questions With
Correct Answers


Differential Cost - CORRECT ANSWER✔✔-A difference in cost between
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any two alternatives
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Differential Revenue - CORRECT ANSWER✔✔-A difference in revenue
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between any two alternatives
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Avoidable Cost - CORRECT ANSWER✔✔-A cost that can be eliminated by
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choosing one alternative over another
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Sunk Cost - CORRECT ANSWER✔✔-A cost that has already been
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incurred and cannot be avoided regardless of what a manager decides
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to do
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Drop Product Line - CORRECT ANSWER✔✔-Locating expenses and/or
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revenues that will be eliminated if a single product is dropped from
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production

, Make or Buy Decisions - CORRECT ANSWER✔✔-Determining whether
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it's smarter to Make or Buy a product based on expenses and buying
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prices


Special Order - CORRECT ANSWER✔✔-A one time order that is not
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considered part of the company's normal ongoing business
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Contained Resource - CORRECT ANSWER✔✔-Determine what product
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has the highest CM per unit (CM/min to produce OR CM/lb per unit)
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Sell or Proccess Further - CORRECT ANSWER✔✔-Determine if its more
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profitable to sell a product or continue to produce further (Rev-
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Cost=Profit)


Calculate Working Capital - CORRECT ANSWER✔✔-Current Assets -
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Current Liabilities |




Cost of Capital - CORRECT ANSWER✔✔-The average rate of return that
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the company must pay to its long term creditors and its shareholders for
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the use of their funds
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Calculate Current Ratio - CORRECT ANSWER✔✔-Current Assets/ Current
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Liabilities
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