User Submitted Name Status Score Instructions
Yingyi Wang 29/03/12 17:14
AYB225 - Quiz 1 Completed 29 out of 30 points
Question 1
1 out of 1 points
Which of the following statements is FALSE regarding cost-plus pricing? Answer
The cost-plus price chosen has
Selected Answer:
already been studied for customer reaction to the price.
Question 2
1 out of 1 points
A recent college graduate has the choice of buying a new auto for $20,000 or investing the money for four years with a 6% expected annual rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is: Answer
Selected Answer:
$4,800
Question 3
1 out of 1 points
Answer the following questions using the information below:
Flowers For Everyone is considering replacing its existing delivery van with a new one. The new van can offer
considerable savings in operating costs. Information about the existing van and the new van follow:
Existing van New vanOriginal cost $100,000 $180,000 Annual operating cost $ 35,000 $ 20,000 Accumulated depreciation $ 60,000 Remaining life 10 years 10 years Salvage value in 10 years $ 0 $ 0 Annual depreciation $ 4,000 $ 18,000
If Flowers For Everyone replaces the existing delivery van with the new one, over the next 10 years operating profit will: Answer
Current salvage value of the existing van $ 45,000
Selected Answer:
increase
by
$150,000
Question 4
1 out of 1 points
In order to make decisions, managers need to know: Answer
Sele
cted Answer:
both costs
Question 5
1 out of 1 points
A ________ is a grouping of individual indirect cost items. Answer
Selected Ans
cos
wer: t pool
Question 6
1 out of 1 points
A short-run pricing decision typically has a time horizon of less than: Answer
Sele
cted Answer:
one year
Question 7
1 out of 1 points
Assume there is a reduction in the selling price and all other CVP parameters remain constant. This change will: Answer
Selected Answer:
reduce operating profit
Question 8
1 out of 1 points
The margin of safety is the difference between: Answer
budgeted
Selected Answer:
revenues break-even revenues
and
Question 9
1 out of 1 points
management accounting
