Incremental AnalysisMODULE 6INCREMENTAL ANALYSISBasic conceptsSteps in decision making process5.What is the first step in the decision making process?A.Specify the criteria by which the decision is to be made.B.Consider the strategic issues regarding the decision context.C.Perform an analysis in which the relevant information is developed and analyzed.D.Compare the alternatives.
7.A major accounting contribution to the managerial decision-making process inevaluating possible courses of action is to
8.An analysis of relevant costs and relevant revenues
Pitfalls in decision making1.When discussing the pitfalls to be avoided in decision-making, four reminders usuallyemerge. Which is NOT one of those reminders?
19.Which one of the following is not a common mistake in a decision-making process?A.Considering sunk costs as relevant.B.Considering opportunity cost, an imputed cost, being relevant.C.Considering fixed costs as avoidable fixed costs.D.Unitizing fixed costs.
24.One of the behavioral problems with relevant cost analysis is the overemphasis onshort-term goals, which can lead to neglect of:
Incremental analysis25.Incremental analysis is the process of identifying the financial data that:
48.Incremental analysis is most useful