Chapter 11 -Accounting

1.For decision making, a listing of the relevant speak tos: a. loss help the decision maker concentrate on the apt(p) data b.will plainly allow future cost c.will only include cost that differ among alternatives d.All of these answers argon correct. reception:dDifficulty:2Objective:2 foothold to project:relevant costs 2.A computer system installed terminal form is an example of a(n): a.sunk cost b.relevant cost c.differential cost d.avoidable cost exercise:aDifficulty:1Objective:2 Terms to instruct:sunk costs 3.In evaluating different alternatives, it is useful to concentrate on: a.variable costs b.fixed costs c.total costs d.relevant costs resoluteness:dDifficulty:1Objective:2 Terms to witness:relevant costs 4.Jims 5-year-old Geo Prizm requires repairs estim ated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda civic instead for $3,000 cash.

Julie estimated the side by side(p) costs for the twain cars: Geo PrizmHonda Civic Acquisition cost$15,000$3,000 Repairs$ 3,000 yearbook operating costs (Gas, maintenance, insurance)$ 2,280$2,100 What should Jim do? What are his savings in the first year? a.Buy the Honda Civic; $9,780 *b.Buy the Honda Civic; $ cl xxx c.Fix the Geo Prizm; $5,518! d.Fix the Geo Prizm; $5,280 Answer:bDifficulty:2Objective:2 Terms to Learn:relevant costs Geo ($3,000 + $2,280) Honda ($3,000 + $2,100) = $180 cost savings with the Honda option 5.When making decisions: a.quantitative factors are the just about important b.qualitative factors are the most important c.appropriate tilt must(prenominal) be given to both quantitative and...If you ask to she-bop a full essay, order it on our website: BestEssayCheap.com

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