Incremental revenue is the additional revenue received as a result of selecting
ID: 2434381 • Letter: I
Question
Incremental revenue is the additional revenue received as a result of selecting one decision alternative over another.A) True
B) False
The margin of safety is the difference between the current level of sales and break-even sales.
A) True
B) False
Sunk costs:
A) would include the cost of your tuition after the refund deadline has passed.
B) Are costs that have been incurred in the past.
C) are not relevant for decision making
D) All of the above are correct.
Cost allocation methods that provide the most accurate full cost for financial reporting also provide the most accurate information for making decisions within the company.
A) True
B) False
The more costs that are allocated to a cost plus contract, the more the supplier will be paid under the contract.
A) True
B) False
One of the reasons that companies allocate costs is to reduce the frivolous use of common resources.
A) True
B) False
The most difficult part of determining the profit maximizing price is determining profit at a given level of unit sales.
A) True
B) False
Financial accounting is concerned with presenting results of past transactions while managerial accounting places considerable emphasis on the future.
A) True
B) False
Indirect costs occur because resources are shared by more than cost object.
A) True
B) False
Budgets are financial plans prepared by managerial accountants.
A) True
B) False
According to the theory of constraints, everything else should be subordinate to the binding constraint.
A) True
B) False
True or False: Firms that have high levels of fixed costs have low operating leverage
A) True
B) False
Explanation / Answer
1. B 2. A 3.D 4. B 5.A 6.A 7.A 8.A 9.A 10.B