Question 1

Do managers consider long or short strategies in their analysis of the one-time-only special-order decision?

Accepted Answer

Managers do not consider long-term strat

Question 2

The managerial accountant at the Vitamin and Mineral Shoppe prepared the following income statement for the most current year:
   
If the manager had discontinued the Vitamin A product line prior to this year,how would that impact the corporate profits?

Accepted Answer

The Vitamin A product line contributed $

Question 3

What factors must managers consider when they decide to add or drop a customer,or segment?

Accepted Answer

Managers should focus only on

Question 4

Depreciation cost is past,or sunk because it represents the cost of equipment that a company has already purchased.

Accepted Answer

A) True 
 B)False

Question 5

Performance evaluation focuses on responsibility centers for a specific period rather than projects or equipment.

Accepted Answer

A) True 
 B)False

Question 6

The mathematical inequality or equality that must be satisfied by the variables in a mathematical model is a ________.

Accepted Answer

A) constraint 
B) solution 
C) prime solution 
D) optimal solution 
E) qualitative factor 
A) constraint 
B) solution 
C) prime solution 
D) optimal solution 
E) qualitative factor

Question 7

The optimization technique used to maximize the objective function when there are multiple constraints is the:

Accepted Answer

A) simplex method. 
B) graphic method. 
C) trial-and-error method. 
D) set-up method. 
E) operating method. 
A) simplex method. 
B) graphic method. 
C) trial-and-error method. 
D) set-up method. 
E) operating method.

Question 8

In contrast to theory of constraints (TOC),activity-based costing (ABC)systems:

Accepted Answer

A) take a long-run perspective and focus on improving process by eliminating non-value activities. 
B) take a short-run perspective and focus on improving process by increasing non-value activities. 
C) are less useful for long-run pricing,and capacity management. 
D) are less useful in long-run cost control. 
E) are less useful in long-run capacity management. 
A) take a long-run perspective and focus on improving process by eliminating non-value activities. 
B) take a short-run perspective and focus on improving process by increasing non-value activities. 
C) are less useful for long-run pricing,and capacity management. 
D) are less useful in long-run cost control. 
E) are less useful in long-run capacity management.

Question 9

Managers strive to reduce the inconsistency between the decision model and the performance-evaluation model.

Accepted Answer

A) True 
 B)False

Question 10

We define relevant revenues as ________.

Accepted Answer

A) sunk costs 
B) theory of constraints 
C) product-mix decisions 
D) expected future revenues 
E) past costs in decisions making 
A) sunk costs 
B) theory of constraints 
C) product-mix decisions 
D) expected future revenues 
E) past costs in decisions making

Question 11

Optimization techniques,such as linear programming,solve more complex problems.

Accepted Answer

A) True 
 B)False

Question 12

Managers maximize operating income:

Accepted Answer

A) to avoid optimal sales. 
B) to determine product mix. 
C) to disregard income supply and demand. 
D) to avoid individual contribution margins. 
E) to disregard data about which products to sell and in what quantity. 
A) to avoid optimal sales. 
B) to determine product mix. 
C) to disregard income supply and demand. 
D) to avoid individual contribution margins. 
E) to disregard data about which products to sell and in what quantity.

Question 13

Which of the following is not an example of a joint cost?

Accepted Answer

A) Cost of distillation. 
B) Coal is distilled to yield natural gas. 
C) Coal is distilled to yield other products. 
D) A cost that occurs when a production process yields one product. 
E) A cost that arises when a production process yields multiple products. 
A) Cost of distillation. 
B) Coal is distilled to yield natural gas. 
C) Coal is distilled to yield other products. 
D) A cost that occurs when a production process yields one product. 
E) A cost that arises when a production process yields multiple products.

Question 14

In which step of the decision-making process do managers eliminate workers and there is a negative effect on employee morale?

Accepted Answer

A) Step 1: Modify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn. 
A) Step 1: Modify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn.

Question 15

Current disposal value of old machine is relevant when it is an expected future benefit that will only occur if the company replaces the machine.

Accepted Answer

A) True 
 B)False

Question 16

To maximize operating income,the manager must maximize contribution margin of the constrained or bottleneck resource.

Accepted Answer

A) True 
 B)False

Question 17

Management accountants analyze and present relevant data to guide managers' decisions.

Accepted Answer

A) True 
 B)False

Question 18

The manager at the Energy Factory reported that the old machine was not efficient.The managerial accountant provided the following information:

Accepted Answer

If the manager's performance evaluation

Question 19

Lump-sum charges in the current year and depreciation charges over two years are:

Accepted Answer

A) past costs. 
B) future costs. 
C) current costs. 
D) relevant costs. 
E) average costs. 
A) past costs. 
B) future costs. 
C) current costs. 
D) relevant costs. 
E) average costs.

Question 20

A manager at the Marina Concepts Store sells three levels of boat heaters,low,medium,and high,to house their winter boats.The managerial accountant reported the following information:
 
The high-level heater is operating at a loss.If the manager discontinued the high-level heater,what is the increase or decrease in operating income? What is the increase or decrease in operating income if the manager discontinued the heater and rented out the space used to store the heater for $11,000 per year?

Accepted Answer

A) $800 increase;$8,500 increase 
B) $900 decrease;$9,200 decrease 
C) $1,000 increase;$9,300 increase 
D) $3,400 decrease;$7,600 increase 
E) $1,600 increase;$9,600 increase 
A) $800 increase;$8,500 increase 
B) $900 decrease;$9,200 decrease 
C) $1,000 increase;$9,300 increase 
D) $3,400 decrease;$7,600 increase 
E) $1,600 increase;$9,600 increase

Do managers consider long or short strategies in their analysis of the one-time-only special-order decision?

The managerial accountant at the Vitamin and Mineral Shoppe prepared the following income statement for the most current year: If the manager had discontinued the Vitamin A product line prior to this year,how would that impact the corporate profits?

What factors must managers consider when they decide to add or drop a customer,or segment?

Depreciation cost is past,or sunk because it represents the cost of equipment that a company has already purchased.

Performance evaluation focuses on responsibility centers for a specific period rather than projects or equipment.

The mathematical inequality or equality that must be satisfied by the variables in a mathematical model is a ________.

The optimization technique used to maximize the objective function when there are multiple constraints is the:

In contrast to theory of constraints (TOC),activity-based costing (ABC)systems:

Managers strive to reduce the inconsistency between the decision model and the performance-evaluation model.

We define relevant revenues as ________.

Optimization techniques,such as linear programming,solve more complex problems.

Managers maximize operating income:

Which of the following is not an example of a joint cost?

In which step of the decision-making process do managers eliminate workers and there is a negative effect on employee morale?

Current disposal value of old machine is relevant when it is an expected future benefit that will only occur if the company replaces the machine.

To maximize operating income,the manager must maximize contribution margin of the constrained or bottleneck resource.

Management accountants analyze and present relevant data to guide managers' decisions.

The manager at the Energy Factory reported that the old machine was not efficient.The managerial accountant provided the following information:

Lump-sum charges in the current year and depreciation charges over two years are:

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 9: Decision Making and Relevant Information

Do managers consider long or short strategies in their analysis of the one-time-only special-order decision?

The managerial accountant at the Vitamin and Mineral Shoppe prepared the following income statement for the most current year: If the manager had discontinued the Vitamin A product line prior to this year,how would that impact the corporate profits?

What factors must managers consider when they decide to add or drop a customer,or segment?

Depreciation cost is past,or sunk because it represents the cost of equipment that a company has already purchased.

Performance evaluation focuses on responsibility centers for a specific period rather than projects or equipment.

The mathematical inequality or equality that must be satisfied by the variables in a mathematical model is a ________.

The optimization technique used to maximize the objective function when there are multiple constraints is the:

In contrast to theory of constraints (TOC),activity-based costing (ABC)systems:

Managers strive to reduce the inconsistency between the decision model and the performance-evaluation model.

We define relevant revenues as ________.

Optimization techniques,such as linear programming,solve more complex problems.

Managers maximize operating income:

Which of the following is not an example of a joint cost?

In which step of the decision-making process do managers eliminate workers and there is a negative effect on employee morale?

Current disposal value of old machine is relevant when it is an expected future benefit that will only occur if the company replaces the machine.

To maximize operating income,the manager must maximize contribution margin of the constrained or bottleneck resource.

Management accountants analyze and present relevant data to guide managers' decisions.

The manager at the Energy Factory reported that the old machine was not efficient.The managerial accountant provided the following information:

Lump-sum charges in the current year and depreciation charges over two years are:

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters