ACCT 2302 Exam 3 (The REVENGE TEST) BAMS

In business, companies can use ________ to build models that will predict the future state.

predictive analytics

A sunk cost___

includes costs that have been incurred in the past and cannot be changed

Relevant information

is expected future data and differs amongst the alternatives

Mike’s Auto Service reported information about the cost associated to sell as is or process further. The managerial accountant expects to earn $200,000 of revenue from selling parts as is.

State whether the managerial accountant should “Process Further” or “Do Not Process” based on the Decision Rule.

 

	Sell As Is	Process Further	Differences: Additional Revenue/(Costs) from Processing Further
Expected revenue from selling parts	$200,000
Expected revenue from selling processed parts		$250,000	$50,000
Additional cost to remanufacture		($35,000)	($35,000)
Total Net Benefit	$200,000	$215,000	$15,000

Process further because the extra revenue from processing further is more than the extra cost of processing further

Cost-plus pricing

starts with the product’s total costs and adds a desired profit to determine a cost-plus price

Which of the following is NOT a benefit of outsourcing?

involves giving up control over quality and scheduling

________ costs include costs that may be eliminated as a result of discontinuing the product

Avoidable fixed

A special order should be rejected when ________

the price of the special order is NOT more than variable costs of the order

A managerial accountant needs to make a sell or continue to process decision about a product. The managerial accountant should continue manufacturing the product instead of selling the product if

the extra revenue is greater than the extra cost to continue manufacturing a product

refers to a company having work performed overseas.

Offshoring

The ________ contain(s) NO allocation of common fixed costs.

segment margin income statement

Segment margin income ________

refers to the result of operating income or loss for each individual product line

You have been asked to determine the variable cost per item to analyze a special order. To obtain the variable cost per item, you will need to reference the company's order file, which contains information for all orders in the past three years. Fields in this file include item numbers, descriptions, sales prices, and variable costs per unit. Which Excel function will be most helpful in locating the variable cost per unit for each item?

VLOOKUP

A special order__

occurs when a customer requests a one-time order at a reduction in the sales price

When using VLOOKUP, where must the lookup value be located in the table array?

The lookup value must be in the leftmost column of the table array

________ help guide managers to what they should do to make the business more profitable

Prescriptive analytics