Questions from Managerial Accounting

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk

Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a decision?

Q: When inventory increases, will absorption-costing or variable-costing

When inventory increases, will absorption-costing or variable-costing income be greater? Why?

Q: Define the term opportunity cost, and give an example of one

Define the term opportunity cost, and give an example of one.

Q: What behavioral tendency do people often exhibit with regard to opportunity costs

What behavioral tendency do people often exhibit with regard to opportunity costs?

Q: Briefly describe the proper approach for making a decision about adding or

Briefly describe the proper approach for making a decision about adding or dropping a product line.

Q: What is a joint production process? Describe a special decision that

What is a joint production process? Describe a special decision that commonly arises in the context of a joint production process. Briefly describe the proper approach for making this type of decision...

Q: Briefly describe the proper approach to making a production decision when limited

Briefly describe the proper approach to making a production decision when limited resources are involved.

Q: How is sensitivity analysis used to cope with uncertainty in decision making

How is sensitivity analysis used to cope with uncertainty in decision making?

Q: There is an important link between decision making and managerial performance evaluation

There is an important link between decision making and managerial performance evaluation. Explain

Q: Why can unitized fixed costs cause errors in decision making?

Why can unitized fixed costs cause errors in decision making?