Chapter 9 21. If the incremental costs of processing further are greater than th
ID: 2498735 • Letter: C
Question
Chapter 9
21. If the incremental costs of processing further are greater than the incremental revenue, the decision of selling the product at the split-off point is justified.
a. True
b. False
22. The common costs shared by two or more products before they are split off are called joint costs.
a. True
b. False
23. Managers should use only financial and quantitative information in the decision-making process.
a. True
b. False
24. Conducting post completion audits to determine if short-run outcomes were achieved falls under the evaluation stage of the management process.
a. True
b. False
25. Managers should use both financial and nonfinancial quantitative and qualitative information as inputs in the decision-making process.
a. True
b. False
Explanation / Answer
Answers:
21. If the incremental costs of processing further are greater than the incremental revenue, the decision of selling the product at the split-off point is justified.
b. False
22. The common costs shared by two or more products before they are split off are called joint costs.
a. True
23. Managers should use only financial and quantitative information in the decision-making process.
b. False
24. Conducting post completion audits to determine if short-run outcomes were achieved falls under the evaluation stage of the management process.
a. True
25. Managers should use both financial and nonfinancial quantitative and qualitative information as inputs in the decision-making process.
a. True