Accounting 526 Final Exam questions and
answers 2026\2027 A+ Grade
Incremental Analysis
- correct answer focuses on the effect of alternative courses of action on the relevant revenues and
costs
Relevant Revenue
- correct answer amount of increase or decrease in revenue expected from a course of action as
compared with an alternative
Relevant Cost
- correct answer amount of increase or decrease in cost that is expected from a course of action as
compared with an alternative
Sunk Cost
- correct answer cost that have been incurred in the past and are not relevant to a decision
Opportunity Cost
- correct answer the benefit lost when choosing one course of action over another
TRUE
- correct answer Estimating costs accurately at an early stage in the value chain is crucial to developing a
profitable product. (True or False)
Target Pricing
- correct answer With _______________ managers arrive at a selling price by looking to the market.
c.) a sunk cost
- correct answer 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
a.) a qualitative factor
- correct answer 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
it ignores all selling and administrative costs incurred to provide customer service and support
- correct answer Measuring customer profitability only by looking at whether the sales revenue a
customer generates exceeds the cost of goods sold ignores what?
b.) occurs in the future and is avoidable
- correct answer 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
c.) occurs in the past and is avoidable
d.) occurs in the past and is unavoidable
Budget
- correct answer The primary method of communicating agreed upon objectives throughout an
organization can be determined by calculating a ________________.
(Budgeted Sales in Units) + (Desired Ending Finished Goods in Units) - (Beginning Finished Goods in
Units)
- correct answer What is the formula for calculating the production budget?
answers 2026\2027 A+ Grade
Incremental Analysis
- correct answer focuses on the effect of alternative courses of action on the relevant revenues and
costs
Relevant Revenue
- correct answer amount of increase or decrease in revenue expected from a course of action as
compared with an alternative
Relevant Cost
- correct answer amount of increase or decrease in cost that is expected from a course of action as
compared with an alternative
Sunk Cost
- correct answer cost that have been incurred in the past and are not relevant to a decision
Opportunity Cost
- correct answer the benefit lost when choosing one course of action over another
TRUE
- correct answer Estimating costs accurately at an early stage in the value chain is crucial to developing a
profitable product. (True or False)
Target Pricing
- correct answer With _______________ managers arrive at a selling price by looking to the market.
c.) a sunk cost
- correct answer 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
a.) a qualitative factor
- correct answer 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
it ignores all selling and administrative costs incurred to provide customer service and support
- correct answer Measuring customer profitability only by looking at whether the sales revenue a
customer generates exceeds the cost of goods sold ignores what?
b.) occurs in the future and is avoidable
- correct answer 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
c.) occurs in the past and is avoidable
d.) occurs in the past and is unavoidable
Budget
- correct answer The primary method of communicating agreed upon objectives throughout an
organization can be determined by calculating a ________________.
(Budgeted Sales in Units) + (Desired Ending Finished Goods in Units) - (Beginning Finished Goods in
Units)
- correct answer What is the formula for calculating the production budget?
