acc560 mcqs 494896

Week 6 – Chapter 7 Pre- Quiz Study 15 QUESTIONS Question 1 Which of the following stages of the management decision-making process is improperly sequenced? Evaluate possible courses of action ? Make decision. Assign responsibility for the decision ? Identify the problem. Identify the problem ? Determine possible courses of action. Assign responsibility for decision ? Determine possible courses of action. Question 2 A segment has the following data: Sales $700,000 Variable expenses 300,000 Fixed expenses 550,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $400,000 decrease cannot be determined from the data provided $5,000 decrease $400,000 increase Question 3 New Age Makeup produces face cream. Each bottle of face cream costs $10 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. New Age Makeup could sell the sunscreen bottles for $23 each. Face cream must be processed further because its profit is $9 each. Face cream must not be processed further because costs increase more than revenue. Face cream must not be processed further because it decreases profit by $1 each. Face cream must be processed further because it increases profit by $3 each. Question 4 A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost? The book value of the old equipment Depreciation expense of the old equipment The current disposal price of the old equipment The loss on disposal of the old equipment Question 5 Incremental analysis would not be appropriate for: analysis of manufacturing variances. elimination of an unprofitable segment. an allocation of limited resource decision. a make or buy decision. Question 6 Sandusky Inc. has the following costs when producing 100,000 units: Variable…