Question 1

Incremental analysis is synonymous with

Accepted Answer

A)  difficult analysis. 
B)  differential analysis. 
C)  gross profit analysis. 
D)  derivative analysis. 
A)  difficult analysis. 
B)  differential analysis. 
C)  gross profit analysis. 
D)  derivative analysis.

Question 2

Which statement is true concerning the decision rule on whether to make or buy?

Accepted Answer

A)  The company should buy if the cost of buying is less than the cost of producing. 
B)  The company should buy if the incremental revenue exceeds the incremental costs. 
C)  The company should buy as long as total revenue exceeds present revenues. 
D)  The company should buy assuming no additional fixed costs are incurred. 
A)  The company should buy if the cost of buying is less than the cost of producing. 
B)  The company should buy if the incremental revenue exceeds the incremental costs. 
C)  The company should buy as long as total revenue exceeds present revenues. 
D)  The company should buy assuming no additional fixed costs are incurred.

Question 3

Incremental analysis would not be appropriate for

Accepted Answer

A)  a make or buy decision. 
B)  an allocation of limited resource decision. 
C)  elimination of an unprofitable segment. 
D)  analysis of manufacturing variances. 
A)  a make or buy decision. 
B)  an allocation of limited resource decision. 
C)  elimination of an unprofitable segment. 
D)  analysis of manufacturing variances.

Question 4

A company is deciding on whether to replace some old equipment with new equipment. Which of the following is not a relevant cost for incremental analysis?

Accepted Answer

A)  Annual operating cost of the new equipment 
B)  Annual operating cost of the old equipment 
C)  Net cost of the new equipment 
D)  Accumulated depreciation on the old equipment 
A)  Annual operating cost of the new equipment 
B)  Annual operating cost of the old equipment 
C)  Net cost of the new equipment 
D)  Accumulated depreciation on the old equipment

Question 5

Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity?

Accepted Answer

A)  Net income will not be affected. 
B)  Net income will increase if the special sales price per unit exceeds the unit variable costs. 
C)  Net income will decrease. 
D)  Additional fixed costs will probably be incurred. 
A)  Net income will not be affected. 
B)  Net income will increase if the special sales price per unit exceeds the unit variable costs. 
C)  Net income will decrease. 
D)  Additional fixed costs will probably be incurred.

Incremental analysis is synonymous with

Which statement is true concerning the decision rule on whether to make or buy?

Incremental analysis would not be appropriate for

A company is deciding on whether to replace some old equipment with new equipment. Which of the following is not a relevant cost for incremental analysis?

Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity?

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 7: Incremental Analysis

Incremental analysis is synonymous with

Which statement is true concerning the decision rule on whether to make or buy?

Incremental analysis would not be appropriate for

A company is deciding on whether to replace some old equipment with new equipment. Which of the following is not a relevant cost for incremental analysis?

Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity?

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

Filters