Sunk costs a are relevant b are differential c have

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Managerial Accounting
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Chapter 3 / Exercise 4
Managerial Accounting
Warren/Tayler
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49.Sunk costs a.are relevant.b.are differential.c.have future implications.d.are ignored when evaluating alternatives.
50.A computer system installed last year is an example of
Chapter 11 Page 2
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The document you are viewing contains questions related to this textbook.
Managerial Accounting
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Chapter 3 / Exercise 4
Managerial Accounting
Warren/Tayler
Expert Verified
51.Costs that CANNOT be changed by any decision made now or in the future are
52.In evaluating different alternatives, it is useful to concentrate on
53.Which of the following costs always differ among future alternatives?a.Fixed costsb.Historical costsc.Relevant costsd.Variable costs
54.Which of the following costs are never relevant in the decision-making process?
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 55 AND 56.Jim’s 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 following costs for the two cars:Geo PrizmHonda CivicAcquisition cost$15,000$3,000Repairs$ 3,000---Annual operating costs (Gas, maintenance, insurance)$ 2,280$2,10055.The cost NOT relevant for this decision is(are)
Chapter 11 Page 3
56.What should Jim do? What are his savings in the first year?
57.Quantitative factorsa.include financial information, but not nonfinancial information.b.can be expressed in monetary terms.c.are always relevant when making decisions.d.include employee morale.
58.Qualitative factors
59.Historical costs are helpful
60.When making decisions
Chapter 11 Page 4

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