Chapter 11 -Accounting

1.For decision making, a listing of the relevant termss: a. take place help the decision maker concentrate on the apt(p) data b.will plainly imply 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 polish 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 help:dDifficulty:1Objective:2 Terms to look:relevant costs 4.Jims 5-year-old Geo Prizm requires repairs estimated 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 interest costs for the twain cars: Geo PrizmHonda Civic Acquisition cost$15,000$3,000 Repairs$ 3,000 yearly 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; $ clxxx c.Fix the Ge o Prizm; $5,518 d.Fix the Geo P! rizm; $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 most(prenominal) important b.qualitative factors are the most important c.appropriate tilt must(prenominal) be given to both quantitative and...If you ask to tucker a full essay, order it on our website: OrderCustomPaper.com

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