multiple choice questions 61 which of the following is not a step in the decision ma 4303624

 

Multiple Choice Questions
 

61.Which of the following is NOT a step in the decision-making process? 
 
 

A. Explore workable alternatives

 

B. Determine relevant cost and revenue data

 

C. Consider appropriate nonfinancial factors

 

D. Make a decision

 

 

 

 

62.Which of the following is the first step in the decision-making process? 
 
 

A. Evaluate the cost and revenue data

 

B. Identify workable alternatives

 

C. Define the problem

 

D. Consider appropriate nonfinancial factors

 

 

 

 

63.Which is the final step in the decision-making process? 
 
 

A. Consider appropriate nonfinancial factors

 

B. Make a decision

 

C. Identify workable alternatives

 

D. Evaluate the cost and revenue data

 

 

 

 

64.Which of the following is NOT a consideration regarding a special order? 
 
 

A. If the company has sufficient capacity

 

B. If the special order jeopardized sales to existing customers

 

C. Federal laws regarding the price

 

D. Whether employee morale would be affected

 

 

 

 

65.Which of the following is NOT a consideration regarding the purchase of new equipment when looking at the net income under each alternative? 
 
 

A. depreciation expense per year on the new equipment

 

B. annual sales

 

C. differential labor costs

 

D. additional fixed costs under an alternative

 

 

 

 

66.Which of the following is NOT relevant in evaluating whether to accept or reject a special order? 
 
 

A. variable manufacturing costs

 

B. variable selling costs

 

C. incremental fixed costs unique to the order

 

D. fixed manufacturing costs

 

 

 

 

67.Which of the following represents a valid reason for rejecting a special order? 
 
 

A. shipment is expected to go overseas.

 

B. profits will exceed that of current customer orders.

 

C. jeopardizes delivery of a loyal customer's order.

 

D. special tooling is required.

 

 

 

 

68.Which of the following is NOT a consideration when determining whether to continue making a part or to buy that part? 
 
 

A. the timing of the cash receipts and expenditures

 

B. the opportunity cost

 

C. the impact on employees

 

D. the sunk cost

 

 

 

 

69.Contribution margin is calculated by 
 
 

A. deducting variable costs from revenue.

 

B. deducting variable costs and controllable fixed costs from revenue.

 

C. deducting variable costs and common costs from revenue.

 

D. deducting fixed costs from revenue.

 

 

 

 

70.Which of the following is not relevant in decision making? 
 
 

A. opportunity costs

 

B. differential costs

 

C. sunk costs

 

D. variable costs