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MULTIPLE CHOICE QUESTIONS -Incremental Analysis And Capital Budgeting
38. A major accounting contribution to the managerial decision-making process in evaluating
possible courses of action is to
a. assign responsibility for the decision.
b. provide relevant revenue and cost data about each course of action.
c. determine the amount of money that should be spent on a project.
d. decide which actions that management should consider.
39. Which of the following stages of the management decision-making process is improperly
sequenced?
a. Evaluate possible courses of action Æ Make decision.
b. Assign responsibility for the decision Æ Identify the problem.
c. Identify the problem Æ Determine possible courses of action.
d. Assign responsibility for decision Æ Determine possible courses of action.
40. Internal reports that review the actual impact of decisions are prepared by
a. department heads.
b. the controller.
c. management accountants.
d. factory workers.
41. Which of the following steps in the management decision-making process does not
generally involve the managerial accountant?
a. Determine possible courses of action
b. Make the appropriate decision based on relevant data
c. Prepare internal reports that review the impact of decisions
d. None of these
The process of evaluating financial data that change under alternative courses of action is
called
a. double entry analysis.
b. contribution margin analysis.
c. incremental analysis.
d. cost-benefit analysis.
43. Nonfinancial information that management might evaluate in making a decision would not
include
a. employee turnover.
b. contribution margin.
c. the environment.
d. the corporate profile in the community.
44. Incremental analysis is synonymous with
a. difficult analysis.
b. differential analysis.
c. gross profit analysis.
d. derivative analysis.
45. In incremental analysis,
a. only costs are analyzed.
b. only revenues are analyzed.
c. both costs and revenues may be analyzed.
d. both costs and revenues that stay the same between alternate courses of action will
be analyzed.
46. Incremental analysis is most useful
a. in developing relevant information for management decisions.
b. in choosing between the net present value method and the internal rate of return
method.
c. in evaluating the master budget.
d. as a replacement technique for variance analysis.
47. The source of data to serve as inputs in incremental analysis is generated by
a. market analysts.
b. engineers.
c. accountants.
d. all of these.
Which of the following is not a true statement?
a. Incremental analysis might also be referred to as differential analysis.
b. Incremental analysis is the same as CVP analysis.
c. Incremental analysis is useful in making decisions.
d. Incremental analysis focuses on decisions that involve a choice among alternative
courses of action.
49. Incremental analysis would not be appropriate for
a. a make or buy decision.
b. an allocation of limited resource decision.
c. elimination of an unprofitable segment.
d. analysis of manufacturing variances.
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.
51. Which of the following is a true statement about cost behaviors in incremental analysis?
1. Fixed costs will not change between alternatives.
2. Fixed costs may change between alternatives.
3. Variable costs will always change between alternatives.
a. 1
b. 2
c. 3
d. 2 and 3
52. A company is considering the following alternatives:
Alternative 1 Alternative 2
Revenues $120,000 $120,000
Variable costs 60,000 70,000
Fixed costs 35,000 35,000
Which of the following are relevant in choosing between the alternatives?
a. Variable costs
b. Revenues
c. Fixed costs
d. Variable costs and fixed costs
53. It costs Harmon Company $12 of variable and $5 of fixed costs to produce one bathroom
scale which normally sells for $35. A foreign wholesaler offers to purchase 2,000 scales at
$15 each. Harmon would incur special shipping costs of $1 per scale if the order were
accepted. Harmon has sufficient unused capacity to produce the 2,000 scales. If the
special order is accepted, what will be the effect on net income?
a. $4,000 increase
b. $4,000 decrease
c. $6,000 decrease
d. $30,000 increase
Adler Company manufactures a product with a unit variable cost of $50 and a unit sales
price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced
and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70
each in a foreign market which would not affect its present sales. If the company has
sufficient capacity to produce the additional units, acceptance of the special order would
affect net income as follows:
a. Income would decrease by $4,000.
b. Income would increase by $4,000.
c. Income would increase by $70,000.
d. Income would increase by $20,000.
55. In incremental analysis,
a. costs are not relevant if they change between alternatives.
b. all costs are relevant if they change between alternatives.
c. only fixed costs are relevant.
d. only variable costs are relevant
Phoenix SOC/110 Team Proposal Paper
Throughout this course, you have learned about teamwork and effective teams. Now it is time to put it all together and design your own team! This assignment allows you to bring together what you have learned and apply it through creating a group plan.
Imagine you have been asked to create a team at work to meet a specific need within your company.
Create a 350- to 700-word proposal of a team to present to your manager. Include the following:
- Describe what type of group/team this will be.
- Describe the goals of the group/team and how many team members will be needed.
- Outline a plan for how this group/team will be effective, including the following:
- A proposed leadership style
- The characteristics that you are looking for in team members
- The roles that each team member will take on
- Methods for enhancing group cohesion
- Strategies for managing conflict
- Strategies for decision making and problem solving
- A proposed team agenda for the first meeting.
National And Global Finance
Assignment 10: National and Global Finance
(16.0 points)
- Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose a pet store, a restaurant, a tutoring business, or something else. This can be the same type of company you chose in assignment 8 or 9, or it can be different.
a. Describe the type of business you chose. (1-2 sentences. 0.5 points)
b. Describe at least two ways in which the local, state, or federal government would have an impact on your business. (2-4 sentences. 1.0 points)
- Describe at least one advantage and one disadvantage of price ceilings and price floors. Do you think price ceilings and floors are more helpful or more harmful to consumers and the economy? Explain. (2-4 sentences. 1.0 points)
- Describe at least two negative outcomes of having too little money and credit in the economy. (2-4 sentences. 2.0 points)
- Describe at least two negative outcomes of having too much money and credit in the economy. (2-4 sentences. 2.0 points)
- Which Fed tool do you think is most important, and why? (2-4 sentences. 1.0 points)
- Choose one of the following government agencies or laws: FTC, EPA, FDA, CPSC, OSHA, FLSA, EEOC, ADA, SEC, or Affirmative Action. Search online to learn more about the agency or law, and then describe three specific things the law or agency accomplishes. Make sure the information comes from a trustworthy website. Include a link to the website in your answer. (3-6 sentences. 1.5 points)
- Describe at least two products that are commonly imported into the United States. (1-2 sentences. 0.5 points)
- Describe at least two products that are commonly exported from the United States to other countries. (1-2 sentences. 0.5 points)
- Why does the U.S. government encourage U.S. companies to sell their products in other countries? Explain how this helps the U.S. (2-4 sentences. 2.0 points)
- Find the value of one U.S. dollar in a foreign currency. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another currency. List the type of currency and the current value of the U.S. dollar in that country. (1.0 points) TIP:http://www.google.com/finance/converter is a good resource for foreign currency information.
- Describe at least three exchange rate factors that are likely to attract foreign investors to a country’s currency. Explain why these factors are attractive for foreign investors. (3-6 sentences. 3.0 points)