Often asked: Which One Of The Following Does Not Affect A Make Or Buy Decision Quizlet?

Which of the following does not influence the make-or-buy decision?

Which of the following will not affect a make-or-buy decision? Differential fixed costs.

In which steps of the management decision-making process does accounting make its primary contribution?

Terms in this set (24) In which steps of the management decision-making process does accounting make its primary contribution? Identifying the problem and making a decision. Evaluating possible courses of action and reviewing the results of the decision.

Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment?

joint costs. difference between future cost savings and the new equipment’s costs. Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment? It is relevant since it reduces the cost of the new equipment.

You might be interested:  Question: How Long Does Scientific Reports Take To Make A Decision?

Which decision will involve no incremental revenues?

The make or buy decisions will not involve any incremental revenues. The make or buy decisions involve making an in-house production facility or purchase from a third-party manufacturer.

What costs are always relevant?

Relevant costs include differential, avoidable, and opportunity costs. Irrelevant costs include sunk and fixed overhead costs.

What is a cost that Cannot be changed by any present or future decision called?

Irrelevant costs are those that will not change in the future when you make one decision versus another. Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

Which is the first step in the management decision making process?

The first step in making the right decision is recognizing the problem or opportunity and deciding to address it. Determine why this decision will make a difference to your customers or fellow employees.

What is the process of evaluating financial data that change?

The process of evaluating financial data that change under alternative courses of actionis called a. double entry analysis.

What are the relevant costs in a make-or-buy decision?

Relevant costs in make-or-buy decisions include all incremental cash flows. Any cost that does not change as a result of the decision should be ignored such as depreciation and indirect fixed costs.

Which of the following is most likely relevant in a make-or-buy decision?

Which of the following is most likely relevant in a make-or-buy decision? In a make-or-buy decision, the original purchase price of equipment that is currently used in the manufacturing process is usually a relevant cost because the equipment can be sold for its salvage value. Fixed costs are always sunk costs.

You might be interested:  Quick Answer: When Will Uga Make A Decision Head Coach?

Which of the following stages of the management decision-making process is improperly sequenced?

sunk cost. Which of the following stages of the management decision – making process is improperly sequenced? Assign responsibility for the decision → Identify the problem.

What is the relevant range?

The relevant range is the range of activity where the assumption that cost behavior is a straight line (linear) is reasonably valid. With variable costs then, the relevant range will be the range where the cost of adding one more, will be the same as the last.

Which one of the following is an alternative name for incremental analysis?

Incremental analysis helps to determine the cost implications of two alternatives. It is also known as the relevant cost approach, marginal analysis, or differential analysis.

What happens if an unprofitable segment is eliminated?

What happens if an unprofitable segment is eliminated? it is impossible for net income to decrease. variable expenses of the eliminated segment will be eliminated. fixed expenses allocated to the eliminated segment will be eliminated.

What happens if an unprofitable segment is discontinued?

What happens if an UNPROFITABLE segment is discontinued? Variable expenses of the discontinued segment would be eliminated. It is impossible for company-wide net income to increase. Revenue from the discontinued segment is absorbed by the remaining segments.

Leave a Reply

Your email address will not be published. Required fields are marked *