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Unformatted text preview: Chapter 18Activity Resource Usage Model and Tactical Decision Making MULTIPLE CHOICE 1. _______________ consists of choosing among alternatives with an immediate or limited end in view. a. Long-run decision making b. Tactical decision making c. Universal decision making d. All of the above ANS: B PTS: 1 OBJ: 18-1 2. Sound tactical decision making a. only concerns the short run. b. consists of large scale actions that serve a broad purpose. c. consists of supporting the strategic objectives of the firm. d. only concerns the long run. ANS: C PTS: 1 OBJ: 18-1 3. The steps in the tactical decision making process are: I. Comparing relevant costs and relating to strategic goals II. Identifying feasible alternatives III. Predicting costs and benefits and eliminating irrelevant costs IV. Selecting best alternative V. Defining the problem What is the proper sequence of steps? a. I, II, V, III, IV b. II, I, V, III, IV c. V, II, III, I, IV d. V, III, II, IV, I ANS: C PTS: 1 OBJ: 18-1 4. Which of the following is NOT a step in the tactical decision-making process? a. Compare full costs and benefits for alternatives. b. Identify feasible alternatives. c. Select strategies with the most benefit. d. Recognize and define the problem. ANS: A PTS: 1 OBJ: 18-1 5. Which of the following statement is true concerning the nature of tactical decisions? a. Tactical decisions are often small-scale actions b. Tactical decisions often have an immediate or limited end in view c. Tactical decisions should support alternatives that result in long-term competitive advant- age d. all of the above statements are true ANS: D PTS: 1 OBJ: 18-1 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 6. The use of relevant cost data to identify the alternative that provides the greatest benefit to the organiz- ation describes a. target cost analysis. b. functional cost analysis. c. activity cost analysis. d. tactical cost analysis. ANS: D PTS: 1 OBJ: 18-1 7. Tactical decision-making relies a. only on relevant cost information. b. only on qualitative factors. c. on relevant costs as well as other qualitative factors. d. on neither relevant costs or qualitative decisions. ANS: C PTS: 1 OBJ: 18-1 8. An important qualitative factor to consider regarding a special order is the a. variable costs associated with the special order. b. avoidable fixed costs associated with the special order. c. effect the sale of special-order units will have on the sale of regularly priced units. d. incremental revenue from the special order. ANS: C PTS: 1 OBJ: 18-1 9. Qualitative factors that should be considered when evaluating a make-or-buy decision are a. the quality of the outside supplier's product....
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- Fall '10
- Decision Making