ACG 2071 Final Exam with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
Differential Cost ✔Correct Answer-A difference in cost between any two alternatives
Differential Revenue ✔Correct Answer-A difference in revenue between any two alternatives
Avoidable Cost ✔Correct Answer-A cost that can be eliminated by choosing one alternative
over another
Sunk Cost ✔Correct Answer-A cost that has already been incurred and cannot be avoided
regardless of what a manager decides to do
Drop Product Line ✔Correct Answer-Locating expenses and/or revenues that will be
eliminated if a single product is dropped from production
Make or Buy Decisions ✔Correct Answer-Determining whether it's smarter to Make or Buy a
product based on expenses and buying prices
Special Order ✔Correct Answer-A one time order that is not considered part of the company's
normal ongoing business
Contained Resource ✔Correct Answer-Determine what product has the highest CM per unit
(CM/min to produce OR CM/lb per unit)
Sell or Proccess Further ✔Correct Answer-Determine if its more profitable to sell a product or
continue to produce further (Rev-Cost=Profit)
Calculate Working Capital ✔Correct Answer-Current Assets - Current Liabilities
Cost of Capital ✔Correct Answer-The average rate of return that the company must pay to its
long term creditors and its shareholders for the use of their funds
Calculate Current Ratio ✔Correct Answer-Current Assets/ Current Liabilities
Calculate Acid Test Ratio ✔Correct Answer-Quick Assets/ Current Liabilities
(QA Eliminates Inventory and PrePaids)
Calculate Average Collection Period ✔Correct Answer-365/ Acct. Receivable TO
(TO=Sales/Avg. A/R)
Calculate Average Sales Period ✔Correct Answer-365/ Inv. TO (CGS/Avg. Inv.)
Answers |Latest Version |Already Graded A+
Differential Cost ✔Correct Answer-A difference in cost between any two alternatives
Differential Revenue ✔Correct Answer-A difference in revenue between any two alternatives
Avoidable Cost ✔Correct Answer-A cost that can be eliminated by choosing one alternative
over another
Sunk Cost ✔Correct Answer-A cost that has already been incurred and cannot be avoided
regardless of what a manager decides to do
Drop Product Line ✔Correct Answer-Locating expenses and/or revenues that will be
eliminated if a single product is dropped from production
Make or Buy Decisions ✔Correct Answer-Determining whether it's smarter to Make or Buy a
product based on expenses and buying prices
Special Order ✔Correct Answer-A one time order that is not considered part of the company's
normal ongoing business
Contained Resource ✔Correct Answer-Determine what product has the highest CM per unit
(CM/min to produce OR CM/lb per unit)
Sell or Proccess Further ✔Correct Answer-Determine if its more profitable to sell a product or
continue to produce further (Rev-Cost=Profit)
Calculate Working Capital ✔Correct Answer-Current Assets - Current Liabilities
Cost of Capital ✔Correct Answer-The average rate of return that the company must pay to its
long term creditors and its shareholders for the use of their funds
Calculate Current Ratio ✔Correct Answer-Current Assets/ Current Liabilities
Calculate Acid Test Ratio ✔Correct Answer-Quick Assets/ Current Liabilities
(QA Eliminates Inventory and PrePaids)
Calculate Average Collection Period ✔Correct Answer-365/ Acct. Receivable TO
(TO=Sales/Avg. A/R)
Calculate Average Sales Period ✔Correct Answer-365/ Inv. TO (CGS/Avg. Inv.)
