Question :
Multiple Choice Questions
1.All of the following statements describe qualities of : 1257150
Multiple Choice Questions
1.All of the following statements describe qualities of relevance except:
A. Relevant information requires a high degree of precision.
B. Relevant information differs between the alternatives.
C. Relevant information is future oriented.
D. Relevant information includes qualitative as well as quantitative data.
2.Select the correct statement regarding relevant costs and revenues.
A. Relevant costs are also known as unavoidable costs.
B. Relevant costs are only those that are based on past experience.
C. Relevant revenues must differ between the alternatives.
D. All of these.
3.Ann is trying to decide which one of two job offers she will accept. Several items are presented below: Select the items that are irrelevant to Ann’s decision.
A. (1), (2), (3), (4), (5)
B. (2), (3), (4)
C. (1), (3), (5)
D. (2), (4)
4.Alex brought his lunch today but now a co-worker has asked him to go to the deli across the street. Select the correct statement from the following.
A. The cost of the lunch Alex had brought is relevant to Alex’s decision to have lunch with his friend.
B. The cost of the lunch that Alex had brought has nothing to do with his current decision.
C. The cost to buy lunch at the deli is not relevant because it has not yet been incurred.
D. The cost of the lunch Alex already has represents the opportunity cost of dining with his friend.
5.Select the correct statement regarding relevant revenues.
A. Relevant revenues must not differ between the alternatives being considered.
B. Past or future revenues may be relevant.
C. Relevant revenues must make a difference in the decision under consideration.
D. Revenues are not considered relevant in the same way as relevant costs.
6.Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $6 to produce and has a contribution margin of $3, while each unit of Product B costs $12 and has a contribution margin of $4. What is the differential revenue for this decision?
A. $7
B. $1
C. $6
D. $9
7.Which of the following is not a possible alternate term for costs that can be eliminated by taking a specified course of action?
A. Avoidable costs
B. Opportunity costs
C. Relevant costs
D. Differential costs
8.For purposes of decision making, avoidable costs are costs that:
A. were incurred in the past.
B. will not be incurred in the future, regardless of the alternative chosen.
C. differ between alternatives.
D. None of these.
9.Relevant costs are often referred to as:
A. Unavoidable costs
B. Differential costs
C. Sunk costs
D. All of these
10.Scholastic Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below: What are the incremental (differential) costs of the Western Tour?
A. $4,000
B. $6,000
C. $8,000
D. None of these.
