ACC 561 - Week 6 - Assignment - Practice Quiz

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 be analyzed.

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 method.

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?
$8,000 decrease
$12,000 decrease
$60,000 increase
$8,000 increase

Multiple Choice Question 69

Carter, Inc. can make 100 units of a necessary component part with the
following costs:
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?
$170,000
$200,000
$230,000
$240,000

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