Question 1

The split-off point is the point at which joint products can be separated into two or more products.

Accepted Answer

A) True 
 B)False

Question 2

A sunk cost is an expenditure that has proven to be nonproductive.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would be an example of a sunk cost?

Accepted Answer

A) The cost of a new oil burner that replaced a destroyed one. 
B) The cost of an old inefficient oil burner that will be replaced by a more modern and efficient one. 
C) Depreciation expense. 
D) Lost revenue from a bad debt. 
A) The cost of a new oil burner that replaced a destroyed one. 
B) The cost of an old inefficient oil burner that will be replaced by a more modern and efficient one. 
C) Depreciation expense. 
D) Lost revenue from a bad debt.

Question 4

Robbins Co.has been producing a part for a camera they manufacture.The costs for this part are as follows:   Robbins has an opportunity to purchase this part rather than manufacture it.To purchase the part will cost $3 a unit.If the part is purchased,fixed costs will be reduced by 20%.
Should Robbins Co.make or buy this part.Show how you arrived at your decision.

Accepted Answer

@#IMG-DLM& Decision-

Question 5

Which is an example of joint products?

Accepted Answer

A) Sugar and beef. 
B) Pens and erasers. 
C) Granulated charcoal and methyl alcohol. 
D) Iron and plastic. 
A) Sugar and beef. 
B) Pens and erasers. 
C) Granulated charcoal and methyl alcohol. 
D) Iron and plastic.

Question 6

When sales of one product contribute to the sales of another product they are called contribution products.

Accepted Answer

A) True 
 B)False

Question 7

By choosing to go into business for himself,Jim Lazar foregoes the possibility of getting a highly paid job with a large company.This is called a(n):

Accepted Answer

A) Sunk cost. 
B) Out-of-pocket cost. 
C) Opportunity cost. 
D) Joint cost. 
A) Sunk cost. 
B) Out-of-pocket cost. 
C) Opportunity cost. 
D) Joint cost.

Question 8

Differential costs are those that are the same among alternatives.

Accepted Answer

A) True 
 B)False

Question 9

Seidman Company manufactures and sells 30,000 units of product X per month.Each unit of product X sells for $16 and has a contribution margin of $7.If product X is discontinued,$85,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products.If product X is discontinued,Seidman Company's monthly income before taxes should:

Accepted Answer

A) Increase by $210,000. 
B) Increase by $125,000. 
C) Decrease by $210,000. 
D) Decrease by $125,000. 
A) Increase by $210,000. 
B) Increase by $125,000. 
C) Decrease by $210,000. 
D) Decrease by $125,000.

Question 10

In making a decision,management will look thoroughly at both relevant and irrelevant data.

Accepted Answer

A) True 
 B)False

The split-off point is the point at which joint products can be separated into two or more products.

A sunk cost is an expenditure that has proven to be nonproductive.

Which of the following would be an example of a sunk cost?

Which is an example of joint products?

When sales of one product contribute to the sales of another product they are called contribution products.

By choosing to go into business for himself,Jim Lazar foregoes the possibility of getting a highly paid job with a large company.This is called a(n):

Differential costs are those that are the same among alternatives.

In making a decision,management will look thoroughly at both relevant and irrelevant data.

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters

Exam 21: Incremental Analysis

The split-off point is the point at which joint products can be separated into two or more products.

A sunk cost is an expenditure that has proven to be nonproductive.

Which of the following would be an example of a sunk cost?

Which is an example of joint products?

When sales of one product contribute to the sales of another product they are called contribution products.

By choosing to go into business for himself,Jim Lazar foregoes the possibility of getting a highly paid job with a large company.This is called a(n):

Differential costs are those that are the same among alternatives.

In making a decision,management will look thoroughly at both relevant and irrelevant data.

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters