Questions from Managerial Accounting

Q: Distinguish between qualitative and quantitative decision analyses.

Distinguish between qualitative and quantitative decision analyses.

Q: Explain what is meant by the term decision model.

Explain what is meant by the term decision model.

Q: Explain why the book value of equipment is not a relevant cost

Explain why the book value of equipment is not a relevant cost.

Q: Give an example of an irrelevant future cost. Why is it

Give an example of an irrelevant future cost. Why is it irrelevant?

Q: How does the existence of excess production capacity affect the decision to

How does the existence of excess production capacity affect the decision to accept or reject a special order?

Q: What is meant by the term differential cost analysis?

What is meant by the term differential cost analysis?  

Q: Are allocated joint processing costs relevant when making a decision to sell

Are allocated joint processing costs relevant when making a decision to sell a joint product at the split-off point or process it further? Why?  

Q: List and define four types of product quality costs.

List and define four types of product quality costs.

Q: What is meant by the term contribution margin per unit of scarce

What is meant by the term contribution margin per unit of scarce resource?  

Q: List four potential pitfalls in decision making, which represent common errors

List four potential pitfalls in decision making, which represent common errors.