Contributions to the managerial decision-making process

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Reference no: EM13173213

Which of the following items are accounting contributions to the managerial decision-making process?

I. Assign responsibility for the decision.

II. Provide relevant revenue and cost data about each course of action.

III. Decide which actions that management should consider.

IV. Review the results of the decision(Points : 1)

2. Incremental analysis is the process of identifying the financial data that do not change under alternative courses of action.change under alternative courses of action.are mixed under alternative courses of action.no correct answer is given.

3.Relevant costs in accepting an order at a special price include all of the followingexcept direct materials.direct labor.fixed manufacturing overhead.variable manufacturing overhead.

4.In a make-or-buy decision, relevant costs are manufacturing costs that will be saved.the purchase price of the units.opportunity costs.all of these.

5.A company has a process that results in 9,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $60,000 and then sell it for $14 per pound. Should management sell Product A now, or should Product A be processed further and then sold? (If processed further, what is the effect?)

Process further, the company will be better off by $6,000.Sell now, the company will be better off by $6,000.Process further, the company will be better off by $54,000.Sell now, the company will be better off by $60,000.

6.Ivy Solstice is deciding whether to replace its old equipment with new equipment. Which one of the following is not relevant information?

The book value of the old equipment.The cost savings if the new equipment is purchased.The cash price of the new equipment.The salvage value of the old equipment.

7.All of the following are relevant in deciding whether to eliminate an unprofitable segmentexceptthe segment's sales.variable expenses.contribution margin.fixed expenses.

8.When a company has limited resources, the product to make and sell is the one with the highest contribution margin per unit.contribution margin per unit of limited resource.contribution margin rate.markup.

9.Circle Laundry has been considering the purchase of a new power washer with a 4-year life and a $20,000 disposal value. The new machine is expected to create net income of $45,000 in the first year, with a $5,000 increase per year thereafter. How much is the annual rate of return if the initial investment is $340,000?
15.44%.29.17%.32.81%.25.00%.

10.HazyDaysPoolParkmust replace its pool pump at a cost of $180,000. The pump has a useful life of 10 years with an $8,000 salvage value. The required rate of return is 12 percent. The replacement is expected to generate additional day passes to the pool park amounting to profits of $20,000 and cash flows of $37,200 per year. Should Hazy Days invest in the new pool pump if the NPV approach is used?(Points :

1) Yes, the NPV is $32,764.Yes, the NPV is $30,188.No, the NPV is negative.No, the NPV is ($64,420).

Reference no: EM13173213

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