In the activity resource model, flexible resources are

resources acquired as used and needed.

A decision to make or eliminate an unprofitable product is

a keep-or-drop a product-line decision.

Which of these items is NOT an example of a sunk cost?

Materials that have not been purchased yet but will be needed

Which of the following costs is relevant to a make-or-buy decision of a particular part of a product?

direct labor costs used to manufacture the part

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ACCT 303 - Chapter 17 - Tactical Decision

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Answers

1
In the activity resource model, flexible resources are
resources acquired in advance of usage.
usually acquired in lumpy amounts.
are normally fixed or mixed costs.
resources acquired as used and needed.
2
A decision to make or eliminate an unprofitable product is
a make-or-buy decision.
both a make-or-buy decision and a keep-or-drop a product-line decision.
a special-order decision.
a keep-or-drop a product-line decision.
3
A decision to make a component internally versus purchasing from a supplier is
both a special-order decision and a make-or-buy decision.
a special-order decision.
a make-or-buy decision.
a keep-or-drop a product-line decision.
4
In a make-or-buy situation, which of the following qualitative factors is usually considered?
in-house technical knowledge
all are usually considered
supplier reliability
relations with in-house skilled labor
5
Which of the following costs would most likely be relevant in deciding whether to sell a product at split-off?
Joints costs.
Separable costs.
Purchase costs of materials for the joint products.
Labor costs required for the joint products.
6
Which of these items is NOT an example of a sunk cost?
All of these choices
Materials that have not been purchased yet but will be needed
Purchase cost of machinery
Depreciation
7
Sunk costs are
always irrelevant
relevant costs that have only short-run benefits.
sometimes relevant
future costs that have no benefit.
8
Which of the following costs is relevant to a make-or-buy decision of a particular part of a product?
salary of the sales manager who sells the product
depreciation on the plant used to manufacture the part
direct labor costs used to manufacture the part
fixed annual rent paid for the office building

ACCT 303 - Chapter 17 - Tactical Decision Flashcards | StudBud