Managerial Accounting Quiz 7 Score % Name Course: Managerial Accounting Section FILL-IN-THE-BLANK—PRINCIPLES AND TERMINOLOGY INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column. ? ??For?? ? ?Answers?Scoring?? ? 0. Managers determine product prices by adding to a cost amount a plus, called a ??markup?? 0. ____?? ? 1. A method of decision making that focuses on the effect of alternative courses of action on the relevant revenues and costs is ??? 1. ____?? ? 2.
Managerial Accounting Quiz 7 Score % Name Course: Managerial Accounting Section FILL-IN-THE-BLANK—PRINCIPLES AND TERMINOLOGY INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column. ? ??For?? ? ?Answers?Scoring?? ? 0. Managers determine product prices by adding to a cost amount a plus, called a ??markup?? 0. ____?? ? 1. A method of decision making that focuses on the effect of alternative courses of action on the relevant revenues and costs is ??? 1. ____?? ? 2. The relevant financial factors to be considered in a lease or sell decision are differential costs and ??? 2. ____?? ? 3. Costs that have been incurred in the past that are not relevant to the decision are called ??? 3. ____?? ? 4. In a decision to discontinue a product or segment, the relevant costs that will be eliminated are ??? 4. ____?? ? 5. Make or buy options often arise when a manufacturer has excess ?? 5. ____?? ? 6. Decisions to replace usable fixed assets should be based on relevant costs. The relevant costs for a decision of this type are the replacement costs and the ???? 6. ____?? ? 7. The law that prohibits price discrimination within the United States, unless differences in prices can be justified by different costs of serving different customers, is the ???? 7. ____?? ? 8. A net cash outlay of $600,000 for a new piece of equipment could alternatively be invested to earn 8%. The $48,000 forgone by not investing the funds is called ???? 8. ____?? ? 9-11. The three cost concepts used in applying the cost-plus approach to setting normal product prices are:???? ? 9. ?? 9. ____?? ? 10. ?? 10. ____?? ? 11. ?? 11. ____?? ? 12. A cost concept, pioneered by the Japanese, that assumes that the selling price is set by the marketplace is the ??? 12. ____?? ? 13. The term used to describe a situation when the demand for a company’s product exceeds the ability of the company to produce it is ??? 13….
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