Reference no: EM1333325
A student has prepared the following list of statements about decision making and incremental analysis.
Identify each statement as true or false. If false, indicate how to correct the statement
1. The first step in management's decision-making process is, determine and evaluate possible courses of action.
2. The final step in management's decision-making process is to actually make the decision.
3. Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results.
4. In making business decisions, management ordinarily considers only financial information because it is objectively determined.
5. Decisions involve a choice among alternative courses of action.
6. The process used to identify the financial data that change under alternative courses of action is called incremental analysis.
7. Costs that are the same under all alternative courses of action sometimes affect the decision.
8. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not.
9. Variable costs will change under alternative courses of action, but fixed costs will not.
|
Calculate the incremental profit
: Infinite Audio, Inc., manufactures car speakers which it sells to other resellers, compute the incremental profit Infinite Audio would earn by customizing its instruments and marketing directly to end users.
|
|
Crafting a business strategy
: Describe how and why this article is relevant, and what value it adds to crafting a business strategy.
|
|
Three relevant and non-relevant costs in decision
: Identify three relevant and three non-relevant costs in this decision. Set up a table to present the information and then discuss the information.
|
|
Three methods of managerial decision making
: Describe these three methods of managerial decision making.
|
|
Explaining management-s decision-making process
: The first step in management's decision-making process is, determine and evaluate possible courses of action.
|
|
A summary of hot, flat, and crowded by thomas friedman
: Provide a summary of Hot, Flat, and Crowded by Thomas Friedman.
|
|
Production functions exhibit constant, increasing
: Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale.
|
|
Computing new net income if facilities costing is given
: Assume that capacity and sales can be doubled to 4,800 units. Again, compute the new net income if facilities costing 500,000DM are added at 5-year life.
|
|
Finding arbitrage opportunity
: Suppose that the premium on a European put option, p = $3. The time to maturity, T = 1 year. Make sure that you demonstrate the relation that must be satisfied to eliminate the arbitrage opportunity
|