Acct301 1. (tco 9) which of the following is a major accounting

1. (TCO 9) Which of the following is a major accounting contribution to the managerial decision-making process in evaluating possible courses of action? (Points : 4)

Determine who is responsible for the decision.

Prepare internal reports that review the actual impact of a decision made.

Calculate how much should be invested for each potential project.

Select possible actions that management should consider.


2. (TCO 9) Which one of the following is a true statement about incremental analysis? (Points : 4)

It is another name for capital budgeting.

It is the same as CVP analysis.

It is used primarily for long-term planning.

It focuses on decisions that involve a choice among alternative courses of action.


3. (TCO 9) What is the nature of an opportunity cost? (Points : 4)

It is always variable.

It is a potential benefit.

It is included as part of cost of goods sold.

It is a sunk cost. 


4. (TCO 9) A company is deciding whether or not to replace some old equipment with new equipment. Which of the following is not considered in the incremental analysis? (Points : 4)

Annual operating cost of the new equipment

Annual operating cost of the old equipment

Net cost of the new equipment

Book value of the old equipment 


5. (TCO 9) It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? (Points : 4)

decrease $4,000 

increase $4,000

increase $36,000

increase $8,000 


6. (TCO 9) Hungry Bites produces corn chips. The cost of one batch is below:


Direct Materials $14

Direct Labor 10

Variable Overhead 9

Fixed Overhead 10


An outside supplier has offered to produce the corn chips for $20 per batch. If all fixed costs can be eliminated, how much will Hungry Bites save if it accepts the offer? (Points : 4)

$10 per batch

$13 per batch

$23 per batch 

$4 per batch


7. (TCO 9) All of the following are relevant to the sell or process-further decision, except for __________ (Points : 4)

costs incurred beyond the split-off point.

revenues at the split-off point.

costs incurred before the split-off point.

revenues beyond the split-off point.


8. (TCO 8) All of the following are involved in the capital budgeting evaluation process, except for a company’s __________ (Points : 4)

board of directors.

capital budgeting committee.




9. (TCO 8) Capital budgeting is the process __________ (Points : 4)

used in sell or process-further decisions.

of determining how much capital stock to issue.

of making capital-expenditure decisions.

of eliminating unprofitable product lines. 


10. (TCO 8) If a payback period for a project is greater than its expected useful life, the __________ (Points : 4)

project will always be profitable.

entire initial investment will not be recovered.

project would only be acceptable if the company’s cost of capital was low.

project’s return will always exceed the company’s cost of capital. 


11. (TCO 8) Intangible benefits in capital budgeting __________ (Points : 4)

should be ignored because they are difficult to determine.

include increased quality or employee loyalty.

are not considered because they are usually not relevant to the decision.

have a rate of return in excess of the company’s cost of capital. 


12. (TCO 8) The profitability index __________. (Points : 4)

does not take into account the discounted cash flows.

is calculated by dividing total cash flows by the initial investment.

allows comparison of the relative desirability of projects that require differing initial investments.

will never be greater than 1. 


13. (TCO 8) A post audit should be performed using __________ (Points : 4)

a different evaluation technique than that used in making the original decision.

the same evaluation technique used in making the original decision.

estimated amounts instead of actual figures.

an independent CPA. 


14. (TCO 8) A company has a minimum required rate of return of 9% and is considering investing in a project that costs $50,000 and is expected to generate cash inflows of $20,000 at the end of each year for 3 years. The profitability index for this project is __________ (Points : 4)






15. (TCO 8) The capital-budgeting technique that indicates the profitability of a capital expenditure is the __________ (Points : 4)

profitability index method.

net present value method.

internal rate of return method.

annual rate of return method.

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.


Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.


Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?


Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.


Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.


Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !


Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.