Question 1

What kind of decision focuses on whether a one-off order should be accepted or rejected?

Accepted Answer

A)  a relevant decision 
B)  a special-order decision 
C)  a make-or-buy decision 
D)  a sell-or-process-further decision 
A)  a relevant decision 
B)  a special-order decision 
C)  a make-or-buy decision 
D)  a sell-or-process-further decision

Question 2

Refer to Victor's Detailing. Assume the company uses an 80% markup to set the price on each job. What price would the company quote to a new customer?

Accepted Answer

A)  $24 
B)  $30 
C)  $54 
D)  $84 
A)  $24 
B)  $30 
C)  $54 
D)  $84

Question 3

The first step in making a short-run decision is to recognize and define the problem.

Accepted Answer

A) True 
 B)False

Question 4

At split-off, the joint costs of production for joint products are NOT relevant to the sell-or-process-further decision.

Accepted Answer

A) True 
 B)False

What kind of decision focuses on whether a one-off order should be accepted or rejected?

Refer to Victor's Detailing. Assume the company uses an 80% markup to set the price on each job. What price would the company quote to a new customer?

The first step in making a short-run decision is to recognize and define the problem.

At split-off, the joint costs of production for joint products are NOT relevant to the sell-or-process-further decision.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Filters

Exam 13: Short-Run Decision Making: Relevant Costing

What kind of decision focuses on whether a one-off order should be accepted or rejected?

Refer to Victor's Detailing. Assume the company uses an 80% markup to set the price on each job. What price would the company quote to a new customer?

The first step in making a short-run decision is to recognize and define the problem.

At split-off, the joint costs of production for joint products are NOT relevant to the sell-or-process-further decision.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Filters