ACC 561 Week 6 Assignment Practice Quiz .pdf
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ACC 561 Week 6 Assignment Practice Quiz
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Multiple Choice Question 38
A major accounting contribution to the managerial decision-making process in
evaluating possible courses of action is to
provide relevant revenue and cost data about each course of action.
determine the amount of money that should be spent on a project.
decide which actions that management should consider
assign responsibility for the decision.
Multiple Choice Question 45
In incremental analysis,
only costs are analyzed.
only revenues are analyzed.
both costs and revenues may be analyzed.
both costs and revenues that stay the same between alternate courses of action will
Multiple Choice Question 46
Incremental analysis is most useful
as a replacement technique for variance analysis.
in evaluating the master budget.
in developing relevant information for management decisions.
in choosing between the net present value method and the internal rate of return
Multiple Choice Question 53
It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale
which normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at
$30 each. Ross would incur special shipping costs of $2 per scale if the order were
accepted. Ross has sufficient unused capacity to produce the 2,000 scales. If the
special order is accepted, what will be the effect on net income?
Multiple Choice Question 69
Carter, Inc. can make 100 units of a necessary component part with the following
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000
If Carter purchases the component externally, $30,000 of the fixed costs can be
avoided. At what external price for the 100 units is the company indifferent between
making or buying?
Multiple Choice Question 79
Mink Manufacturing is unsure of whether to sell its product assembled or
unassembled. The unit cost of the unassembled product is $60 and Mink would sell it
for $130. The cost to assemble the product is estimated at $42 per unit and the
company believes the market would support a price of $170 on the assembled unit.
What decision should Mink make?
Process further, the company will be better off by $28 per unit.
Sell before assembly, the company will be better off by $40 per unit.
Sell before assembly, the company will be better off by $2 per unit.
Process further, the company will be better off by $58 per unit.
Multiple Choice Question 90
A company decided to replace an old machine with a new machine. Which of the
following is Entry field with correct answer
Depreciation expense on the old equipment
The loss on the disposal of the old equipment
The book value of the old equipment
The current disposal price of the old equipment
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