CHAPTER 8: RELEVANT COSTS FOR SHORT-TERM

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CHAPTER 8: RELEVANT COSTS FOR SHORT-TERM

DECISIONS EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -10 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Which of the following is relevant to Amazon.com's decision to accept a special order at a lower sale price from a large customer in China?

Answer:

The cost of shipping the order to the customer

Question 2: In making short-term special decisions , you should

Answer:

Separate Variable from fixed costs.

Question 3: When making decisions, managers should

Answer:

consider revenues that differ between alternative.Question 4: In deciding whether to drop its electronics product line, Amazon.com would consider

Answer:

All of the above

Question 5: Which of the following costs are irrelevant to business decisions ?

Answer:

Sunk costs

Question 6: When companies are price-setters, their products and services

Answer:

tend to be unique Question 7: In deciding which product lines to emphasize, Amazon.com should focus on the product line that has the highest

Answer:

contribution margin per unit of the constraining factor Question 8: When deciding whether to sell as is or process a product further, managers should ignore which of the following?

Answer:

The costs of processing the product thus far Question 9: When pricing a product or service, managers must consider which of the following?

Answer:

All costs

Question 10: When making outsourcing decisions

Answer:

the variable cost of producing the product in-house is relevant