60.1K

Verified Solution

Link Copied!

1. Select the correct statement regarding "relevant" costs and/or revenues a. Relevant costs are also known as "unavoidable costs" b. Relevant costs are only those that are based on prior decisions made and implemented c. Relevant revenues represent revenues that do not differ among the alternatives d. None of the above represent correct statements 2. Which of the following items represents "qualitative" information? a. The original acquisition cost of a new machine for operations b. Annual depreciation expense of an existing machine used to manufacture inventory C. The precision tolerance ratings of two machines used in production d. The impact on production employees when outsourcing the production process 3. For purposes of decision making, "relevant" costs are those costs that a, are avoidable when choosing one alternative over the other b. were incurred in the past and resulted in decreased profitability c. will not be incurred in the future, regardless of the alternative chosen d. none of the above correctly support the definition of "relevant" costs 4. Hayes, Wells & Luebke. Inc. has five separate departments. One is a tutoring department, that provides quality study support to demanding students. If the tutoring department is closed, the general manager will not be affected because his/her services would still be needed by the remaining departments. If all operations cease, however, this manager would be laid-off. Which of the following is the primary lesson to be learned from this scenario? a. The relevance of costs is context sensitive b. Some sunk costs can be avoided (and would therefore be relevant) c. Opportunity costs are never relevant d. Quantitative information must be precise and accurate in order to be relevant Qualitative information need not be precise because it is never relevant

Answer & Explanation Solved by verified expert

See Answer