管理会计双语课程习题chapter 5
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CH05
MANAGEMENT ACCOUNTING INFORMATION
FOR ACTIVITY AND PROCESS DECISIONS
TRUE/FALSE
1. Sunk costs are never relevant costs for decision making.
a. True
b. False
2. An example of a sunk cost is the amount of a guaranteed contract that has not yet been
paid.
a. True
b. False
3. Personal employee responses are not critical considerations for the business decision
maker.
a. True
b. False
4. For decision-making, differential costs assist in choosing between alternatives.
a. True
b. False
5. For a particular decision, differential revenues and costs are always relevant.
a. True
b. False
6. A cost may be relevant for one decision, but not relevant for a different decision.
a. True
b. False
7. Avoidable costs should be evaluated when deciding whether to discontinue a part, product,
product line, or business segment.
a. True
b. False
8. In make-or-buy decisions, facility-sustaining support costs are unavoidable if the facility
can be converted to another use.
a. True
b. False
9. For one-time-only special orders, flexible costs may be relevant but not capacity-related
costs.
a. True
b. False
10. Bid prices and costs that are relevant for regular orders are the same costs that are relevant
for one-time-only special orders.
a. True
b. False
11. When opportunity costs exist, they are always relevant.
a. True
b. False
12. Depreciation allocated to a product line is a relevant cost when deciding to discontinue that
product.
a. True
b. False
13. When replacing an old machine with a new machine, the book value of the old machine is a
relevant cost.
a. True
b. False
14. If a company is deciding whether to outsource a part, the reliability of the supplier is an
important factor to consider.
a. True
b. False
15. Sometimes qualitative factors are the most important factors in make-or-buy decisions.
a. True
b. False
16. If a company is deciding whether to outsource a part, the reliability of the supplier is an
important factor to consider.
a. True
b. False
17. Outsourcing is risk-free to the manufacturer because the supplier now has the responsibility
of producing the part.
a. True
b. False
18. The central goal of the facility layout design process is to streamline operations to increase
operating income.
a. True
b. False
19. In a process layout, batch production causes inventory costs.
a. True
b. False