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managemen accounting
User
Yingyi Wang
Submitted
29/03/12 17:14
Name
AYB225 - Quiz 1
Status
Completed
Score
29 out of 30 points
Instructions
Question 1
1 out of 1 points
Which of the following statements is FALSE regarding cost-plus pricing?
Answer Selected Answer:
The cost-plus price chosen has already been studied for customer reaction to the price.
Question 2
1 out of 1 points
A recent college graduate has the choice of buying a new auto for $20,000 or investing the money for four years with a 6% expected annual rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:
Answer Selected Answer:
$4,800
Question 3
1 out of 1 points
Answer the following questions using the information below: Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow: Existing van New vanOriginal cost $100,000 $180,000 Annual operating cost $ 35,000 $ 20,000 Accumulated depreciation $ 60,000 Current salvage value of the existing van $ 45,000 Remaining life 10 years 10 years Salvage value in 10 years $ 0 $ 0 Annual depreciation $ 4,000 $ 18,000 If Flowers For Everyone replaces the existing delivery van with the new one, over the next 10 years operating profit will:
Answer Selected Answer:
increase by $150,000
Question 4
1 out of 1 points
In order to make decisions, managers need to know:
Answer Selected Answer:
both costs
Question 5
1 out of 1 points
A ________ is a grouping of individual indirect cost items.
Answer Selected Answer:
cost pool
Question 6
1 out of 1 points
A short-run pricing decision typically has a time horizon of less than:
Answer Selected Answer:
one year
Question 7
1 out of 1 points
Assume there is a reduction in the selling price and all other CVP parameters remain constant. This chan
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