BA 213 Final Exam questions and Answers |
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Terms in this set (50)
Costs incurred before the split-off sunk costs.
point are
a.sunk costs.
b.incremental costs.
c.relevant costs.
d.opportunity costs.
Nonfinancial information that contribution margin.
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.
,A company is within plant capacity. It Net income will increase if the special sales price
is contemplating whether a special per unit exceeds the unit variable costs.
order should be accepted. The order
will not impact regular sales. If the
company accepts the special order,
what will occur?
a.Incremental costs will not be
affected.
b.Net income will increase if the
special sales price per unit exceeds
the unit variable costs.
c.There are no incremental revenues.
d.Both fixed and variable costs will
increase.
Incremental analysis is synonymous differential analysis.
with
a.difficult analysis.
b.differential analysis.
c.gross profit analysis.
d.derivative analysis.
What of the following would not be Unavoidable variable costs
relevant in a make-or-buy decision?
a.Unavoidable variable costs
b.Incremental fixed costs
c.Opportunity costs
d.Avoidable fixed cost
, Miley, Inc. has excess capacity. Under When incremental revenues exceed incremental
what situations should the company costs
accept a special order for less than
the current selling price?
a.Never
b.When additional fixed costs must
be incurred to accommodate the
order
c.When the company thinks it can use
the cheaper materials without the
customer's knowledge
d.When incremental revenues
exceed incremental costs
An opportunity cost Is the potential benefit that may be obtained by
following an alternative course of action.
a.should be initially recorded as an
asset.
b.is the cost of a new product
proposal.
c.is the potential benefit that may be
obtained by following an alternative
course of action.
d.is classified as manufacturing
overheaD.
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LATEST UPDATE
Save
Terms in this set (50)
Costs incurred before the split-off sunk costs.
point are
a.sunk costs.
b.incremental costs.
c.relevant costs.
d.opportunity costs.
Nonfinancial information that contribution margin.
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.
,A company is within plant capacity. It Net income will increase if the special sales price
is contemplating whether a special per unit exceeds the unit variable costs.
order should be accepted. The order
will not impact regular sales. If the
company accepts the special order,
what will occur?
a.Incremental costs will not be
affected.
b.Net income will increase if the
special sales price per unit exceeds
the unit variable costs.
c.There are no incremental revenues.
d.Both fixed and variable costs will
increase.
Incremental analysis is synonymous differential analysis.
with
a.difficult analysis.
b.differential analysis.
c.gross profit analysis.
d.derivative analysis.
What of the following would not be Unavoidable variable costs
relevant in a make-or-buy decision?
a.Unavoidable variable costs
b.Incremental fixed costs
c.Opportunity costs
d.Avoidable fixed cost
, Miley, Inc. has excess capacity. Under When incremental revenues exceed incremental
what situations should the company costs
accept a special order for less than
the current selling price?
a.Never
b.When additional fixed costs must
be incurred to accommodate the
order
c.When the company thinks it can use
the cheaper materials without the
customer's knowledge
d.When incremental revenues
exceed incremental costs
An opportunity cost Is the potential benefit that may be obtained by
following an alternative course of action.
a.should be initially recorded as an
asset.
b.is the cost of a new product
proposal.
c.is the potential benefit that may be
obtained by following an alternative
course of action.
d.is classified as manufacturing
overheaD.
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