ch07 - CHAPTER 7 Incremental Analysis ASSIGNMENT...

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© 2008 For Instructor Use Only 7-1 CHAPTER 7 Incremental Analysis ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Identify the steps in management’s decision- making process. 1, 2 1 1 2. Describe the concept of incremental analysis. 3, 4 2 1 3. Identify the relevant costs in accepting an order at a special price. 5 3 2, 3, 4, 14 1A 1B 4. Identify the relevant costs in a make-or-buy decision. 6, 7 4 5, 6, 14 2A 2B 5. Identify the relevant costs in determining whether to sell or process materials further. 8, 9, 10 5, 6 7, 8, 9, 14 3A 3B 6. Identify the relevant costs to be considered in retaining or replacing equipment. 11 7 10, 11, 14 4A 4B 7. Identify the relevant costs in deciding whether to eliminate an unprofitable segment. 12 8 12, 13, 14 5A 5B
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© 2008 For Instructor Use Only 7-2 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Make incremental analysis for special order and identify nonfinancial factors in the decision. Simple 20–30 2A Make incremental analysis related to make or buy, consider opportunity cost, and identify nonfinancial factors. Moderate 30–40 3A Determine if product should be sold or processed further. Moderate 30–40 4A Compute gain or loss, and determine if equipment should be replaced. Moderate 30–40 5A Compute contribution margin and prepare incremental analysis concerning elimination of divisions. Moderate 30–40 1B Make incremental analysis for special order and identify nonfinancial factors in the decision. Simple 20–30 2B Make incremental analysis related to make or buy, consider opportunity cost, and identify nonfinancial factors. Moderate 30–40 3B Determine if product should be sold or processed further. Moderate 30–40 4B Compute gain or loss, and determine if equipment should be replaced. Moderate 30–40 5B Compute contribution margin and prepare incremental analysis concerning elimination of divisions. Moderate 20–30
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BLOOM’S TAXONOMY TABLE © 2008 For Instructor Use Only 7-3 Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems Study Objective Knowledge Comprehension Application Analysis Synthesis Evaluation * 1. Identify the steps in management’s decision-making process. BE7-1 Q7-1 Q7-2 E7-1 2. Describe the concept of incremental analysis. Q7-3 Q7-4 BE7-2 3. Identify the relevant costs in accepting an order at a special price. Q7-5 BE7-3 E7-2 E7-3 E7-4 E7-14 P7-1A P7-1B 4. Identify the relevant costs in a make-or-buy decision. Q7-6 Q7-7 BE7-4 E7-5 E7-6 P7-2A P7-2B 5. determining whether to sell or process materials further. Q7-8 Q7-9 Q7-10 BE7-5 BE7-6 E7-7 E7-8 E7-9 P7-3A P7-3B 6. Identify the relevant costs to be considered in retaining or replacing equipment. Q7-11 BE7-7 E7-10 E7-11 P7-4A P7-4B 7. deciding whether to eliminate an unprofitable segment. Q7-12 BE7-8 E7-12 E7-13 P7-5A P7-5B Broadening Your Perspective Real-World Focus Exploring the Web Decision Making Across the Organization All About You Activity Managerial Analysis
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This note was uploaded on 04/11/2010 for the course BUSINESS FIN taught by Professor Sata during the Spring '10 term at A.T. Still University.

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ch07 - CHAPTER 7 Incremental Analysis ASSIGNMENT...

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