ACCT 301 Week 6 Quiz
1. (TCO 9) Which one of the
following stages of the management decision-making process is properly
2. (TCO 9) When is
incremental analysis most useful?
3. (TCO 9) Which of the
following will never be a relevant cost?
4. (TCO 9) A company is
deciding whether or not to replace some old equipment with new equipment. Which
of the following is not considered in the incremental analysis?
5. (TCO 9) It costs Lannon
Fields $14 of variable costs and $6 of allocated fixed costs to produce an
industrial trash can that sells for $30. A buyer in Mexico offers to purchase
2,000 units at $18 each. Lannon has excess capacity and can handle the
additional production. What effect will acceptance of the offer have on net
6. (TCO 9)Wishnell Toys can make
1,000 toy robots with the following costs:
7. (TCO 9) All of the
following are relevant to the sell or process-further decision, except for
8. (TCO 8)Most of the capital
budgeting methods use __________.
9. (TCO 8) The capital
budgeting decision depends in part on the __________.
10. (TCO 8) The cash-payback
11. (TCO 8) All of the
following statements about intangible benefits in capital budgeting are
correct, except that they __________
12. (TCO 8) The
profitability index __________.
13. (TCO 8) Post audits of
capital projects __________.
14. (TCO 8) A company has a
minimum required rate of return of 9% and is considering investing in a project
that costs $50,000 and is expected to generate cash inflows of $20,000 at the
end of each year for 3 years. The profitability index for this project is
15. (TCO 8)Disadvantages of the
annual rate of return method include all of the following, except that____