Questions from Managerial Accounting


Q: What is a relevant cost? Identify the two types of relevant

What is a relevant cost? Identify the two types of relevant costs.

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Q: Why are sunk costs irrelevant in deciding whether to sell a product

Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing?

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Q: During the last week of August, Oneida Company’s owner approaches the

During the last week of August, Oneida Company’s owner approaches the bank for a $100,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an...

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Q: Arctic Cat has many types of costs. What is an out

Arctic Cat has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are opportunity costs recorded in the accounting records?

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Q: Piaggio must confront sunk costs. Why are sunk costs irrelevant in

Piaggio must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing?

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Q: Assume that Polarismanufactures and sells 60,000 units of a product

Assume that Polarismanufactures and sells 60,000 units of a product at $11,000 per unit in domestic markets. It costs $6,000 per unit to manufacture ($4,000 variable cost per unit, $2,000 fixed cost p...

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Q: Identify some qualitative factors that should be considered when making managerial decisions

Identify some qualitative factors that should be considered when making managerial decisions.

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Q: Identify the incremental costs incurred by Applefor shipping one additional iPod from

Identify the incremental costs incurred by Applefor shipping one additional iPod from a warehouse to a retail store along with the store’s normal order of 75 iPods.

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Q: KTM is considering eliminating one of its stores in a large U

KTM is considering eliminating one of its stores in a large U.S. city. What are some factors that it should consider in making this decision?

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Q: Fill in each of the blanks below with the correct term.

Fill in each of the blanks below with the correct term. 1. A arises from a past decision and cannot be avoided or changed; it is irrelevant to future decisions. 2.refer to the incremental revenue gene...

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