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Question 1. Question : Which of the following costs is not relevant in decision making? Student Answer: Sunk cost Incremental cost Opportunity cost Differential cost Points Received: 4 of 4 Comments: Question 2. Question : Which of the following does not take the time value of money into account? Student Answer: Internal rate of return Net present value Payback period None of the above Points Received: 0 of 4 Comments: Question 3. Question : Which of the following is not a capital budgeting decision? Student Answer: Purchasing new equipment Replacing old equipment Producing a film project Planning for retirement Points Received: 4 of 4 Comments: Question 4. Question : Which of the following is an example of a sunk cost? Student Answer: Direct materials Variable overhead Equipment depreciation Future cost Points Received: 4 of 4 Comments: Question 5. Question : A revenue that differs between alternatives is called a(n): Student Answer: Incremental revenue. Irrelevant revenue. Joint revenue. Opportunity revenue. Points Received: 4 of 4 Comments: Question 6. Question : Capital expenditure decisions Student Answer: are also called capital budgeting decisions. involve the acquisition of long-lived assets. have a major, long-term effect on a firm’s operations. All of the above are correct. Points Received: 4 of 4 Comments: Question 7. Question : The rate of return that equates the present value of future cash flows to the investment outlay is the Student Answer: hurdle rate. internal rate of return. payback return. accounting rate of return. Points Received: 4 of 4 Comments: Question 8. Question : Which of the following is never considered in incremental analysis? Student Answer: Incremental revenue Sunk costs Incremental profit Differential costs Points Received: 4 of 4 Comments: Question 9. Question : Which of the following is often not a differential cost? Student Answer: Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Points Received: 0 of 4 Comments: Question 10. Question : The required rate of return used to calculate an investment’s net present value is related to the firm’s Student Answer: contribution margin. cost of capital. depreciation methods. fixed costs. Points Received: 0 of 4

Question 1. Question : Which of the following costs is not relevant in decision making?

Student Answer: Sunk cost

Incremental cost

Opportunity cost

Differential cost

Points Received: 4 of 4

Comments:

Question 2. Question : Which of the following does not take the time value of money into account?

Student Answer: Internal rate of return

Net present value

Payback period

None of the above

Points Received: 0 of 4

Comments:

Question 3. Question : Which of the following is not a capital budgeting decision?

Student Answer: Purchasing new equipment

Replacing old equipment

Producing a film project

Planning for retirement

Points Received: 4 of 4

Comments:

Question 4. Question : Which of the following is an example of a sunk cost?

Student Answer: Direct materials

Variable overhead

Equipment depreciation

Future cost

Points Received: 4 of 4

Comments:

Question 5. Question : A revenue that differs between alternatives is called a(n):

Student Answer: Incremental revenue.

Irrelevant revenue.

Joint revenue.

Opportunity revenue.

Points Received: 4 of 4

Comments:

Question 6. Question : Capital expenditure decisions

Student Answer: are also called capital budgeting decisions.

involve the acquisition of long-lived assets.

have a major, long-term effect on a firm’s operations.

All of the above are correct.

Points Received: 4 of 4

Comments:

Question 7. Question : The rate of return that equates the present value of future cash flows to the investment outlay is the

Student Answer: hurdle rate.

internal rate of return.

payback return.

accounting rate of return.

Points Received: 4 of 4

Comments:

Question 8. Question : Which of the following is never considered in incremental analysis?

Student Answer: Incremental revenue

Sunk costs

Incremental profit

Differential costs

Points Received: 4 of 4

Comments:

Question 9. Question : Which of the following is often not a differential cost?

Student Answer: Direct labor

Direct material

Variable manufacturing overhead

Fixed manufacturing overhead

Points Received: 0 of 4

Comments:

Question 10. Question : The required rate of return used to calculate an investment’s net present value is related to the firm’s

Student Answer: contribution margin.

cost of capital.

depreciation methods.

fixed costs.

Points Received: 0 of 4

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