Exam 8: Using Accounting Information to Make Managerial Decisions

Suppose you are trying to decide whether to rent an apartment across the street from campus or a nicer apartment one mile from campus.In either case, you plan to keep your car for social outings.Indicate whether the following pieces of information are relevant or irrelevant to your decision.

As products are made, capacity is used up.Managers must allocate any constrained resource to products so as to maximize the company's contribution margin. Required: a.List three limited resources that can constrain business operations. b.How should managers determine the best way to allocate constrained resources among products or operations?

Which of the following is not a reason a company would be willing to accept new business at a loss?

When multiple products share a constrained resource, the way to allocate the resource is to compute the

When a company accepts an outsourcing offer, managers must take specific action to eliminate internal costs.Which of the following is not a quantitative or qualitative factor managers should consider when accepting an outsourcing offer?

Which of the following statements is true?

When an outsourcing decision refers to the components of a manufacturing product, it is commonly called

Which of the following is not one of the top ten reasons companies outsource their operations?

Sometimes companies will accept new business at a loss with the expectation that certain customers can influence other potential customers.

Which of the following combinations results in differential information? Occurs in the Past Avoidable

When a company accepts an outsourcing offer, managers must take specific action to eliminate internal costs.Which of the following is not an example of such an action?

Your professor is considering retirement.Which of the following will not be relevant in his decision?