Accounting 102 Chapter 4

Accounting 102 Chapter 4 - Chapter 4 Out of 25 questions,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 Out of 25 questions, you answered 12 correctly, for a final grade of 48%. 12 correct (48%)  13 incorrect (52%)  0 unanswered (0%)  Your Results: The correct answer for each question is indicated by a  1 CORRECT Which of the following best describes  relevant information ? A) Relevant information focuses on the past and differs between the alternatives under consideration. B) Relevant information focuses on the past and is not related to the decision under consideration. C) Relevant information focuses on the future and differs between the alternatives under consideration. D) Relevant information focuses on the future and is not related to the decision under consideration. Feedback: Relevant information differs between the alternatives under consideration and is future oriented. LO 1 2 CORRECT Which of the following best describes a  sunk cost ? A) A sunk cost focuses on the past and differs between the alternatives under consideration. B) A sunk cost focuses on the past and is not relevant to the decision under consideration. C) A sunk cost focuses on the future and differs between the alternatives under consideration. D) A sunk cost focuses on the future and is not related to the decision under consideration. Feedback: A sunk cost has been incurred in a past transaction and cannot be avoided; therefore it is not relevant for  decision-making purposes. LO 2 3 CORRECT Another term for  differential revenues  is A) sunk revenues. B) opportunity revenues. C) future revenues. D) relevant revenues. Feedback: Relevant revenues are the expected future revenues that differ between the alternatives under  consideration. They are sometimes called differential revenues. LO 1 4 CORRECT Another term for  relevant costs  is A) avoidable costs.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
B) future costs. C) opportunity costs. D) sunk costs. Feedback: Relevant costs are often referred to as avoidable costs. Certain costs are the same for two alternative  courses of action and cannot be avoided by selecting either one of the alternatives. Such costs are not relevant to  making a decision. However, avoidable costs differ between the alternatives and are thus relevant to making a  decision. LO 1 5 INCORRECT Which of the following is  not  considered to be a unit-level cost? A) The cost of a condenser put in an air conditioner B) The cost of assembling an air conditioner C) The cost of moving a box of condensers which will be put into air conditioners being assembled D) The cost of inspecting an air conditioner Feedback: Moving a box containing many condensers is a batch-level cost. LO 3 6 CORRECT Which of the following is  not  considered to be a product-level cost? A)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/17/2008 for the course ACCT 102 taught by Professor ? during the Summer '06 term at Hofstra University.

Page1 / 10

Accounting 102 Chapter 4 - Chapter 4 Out of 25 questions,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online