Costs and Special Purchase

 Costs and Special Buy Essay


Pupil: _______________________________________________________________________________________

1 ) A cost is not relevant if it: A. B. C. D. E. Does not differ for each alternative available to the decision maker. Adjustments from period to period. Is a future cost. Is actually a mixed price. Is a set cost.

2 . Variable costs will generally be relevant for making decisions because that they: A. N. C. D. E. Change between options. Are volume-based. Have not been committed and differ between options. Change between choices and have been committed. Measure opportunity cost.

a few. Fixed costs will often be irrelevant because that they: A. W. C. M. Are fixed in sum. Are the same whenever period. Commonly do not vary between choices. Are not dedicated.

4. A particular order is: A. B. C. D. E. Typically expected. A profitable chance to sell a particular quantity of a firm's service or product. Typically unpredicted. A particularly huge customer purchase. A hurry order.

your five. Special orders: A. N. C. G. Are frequent. Are infrequent. Generally represent a sizable part of a firm's total business. Can not be rewarding to a company.

6. Committed, or " sunk" costs are generally: A. B. C. D. Elizabeth. Not set. Small in amount. Coming from bad decisions. Occurred in days gone by. Recoverable in trade.

several. All the subsequent are characteristic of relevant costs except: A. B. C. D. Electronic. They are generally variable. They are not fully commited. They are different in sum for different alternatives. They are later on. They are inventory costs.

eight. The major problem with relevant price determination is that it does not recognize the: A. N. C. M. E. Influence of changing costs over time. Long-term character of most product-related decisions. " Sunk" nature of most fixed product costs. Short-term characteristics of most product-related decisions. Need to calculate costs more precisely.

being unfaithful. Depreciation can be described as relevant price in a decision only in the context of: A. B. C. G. E. Time value pounds. Amortized ideals. Reducing duty liability. Sunk cost. Economic accounting.

twelve. Operating at or around full potential will require a good considering a particular order to identify potentially the: A. N. C. Deb. E. Prospect cost from lost revenue. Value of full employment. Time benefit of money. Requirement of good managing. Value of capacity useful resource management.

14. Done regularly, relevant cost pricing in special order decisions may erode normal pricing guidelines and bring about: A. W. C. M. E. Overconfidence in decision-making. A reduction in the business profitability. Inconsistant goals between management and sales personnel. A cost leadership strategy. Maximization of solutions.

12. The worthiness chain research used in connection with the produce or purchase decision frequently leads a good to make use of: A. B. C. D. E. Activity-based costing. Cost-volume revenue analysis. Outsourced workers activities. Relevant cost-based charges. Process improvement.

13. The choice to keep or perhaps drop goods and services involves tactical consideration of all the following besides: A. B. C. D. E. Potential impact on outstanding products or services. Influence on employee comfort. Impact on company effectiveness. Progress potential of the firm. The present inventory of the product.

13. A useful device for fixing production challenges involving multiple products and limited resources can be: A. W. C. Deb. E. Major profit per unit of product. Contribution per unit of scarce resource. Net profit per unit of product. Relevant cost costs. The contribution income affirmation.

15. One of many behavioral problems with relevant expense analysis is a overemphasis upon: A. N. C. Deb. Short-term goals. Unit fixed costs. Prospect costs. Long term strategic desired goals.

16. When using relevant expense analysis, this can be a common oversight for inexperienced managers to incorporate in their research all the following except: A. B. C. D. Sunk costs. Allocated fixed costs. Average set costs. Device variable costs.

17. What kind of the next is correct for...

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