Decision Making Process and Information

1.How is the expense of purchasing a new machine classified?

Relevant costNonsenseSalvage valueIrrecoverable cost

2.What term describes the practice of purchasing goods or services from foreign suppliers rather than domestic ones?

3.Within the context of relevance concepts, what is another term used for relevant revenues?

corresponding revenuesunusual revenuesanticipated future revenuesconsecutive revenues

4.Which type of costs are irrecoverable and remain constant regardless of any actions taken?

sunk costsbunked costsunrecorded costsrecorded costs

5.What term describes the extra cost incurred when performing a specific activity?

incremental costdifferential costdependent costindependent cost

6.What is the second stage in the decision-making process?

analyzing multi-collinearity datagathering quantitative dataconducting qualitative evaluationcollecting necessary information

7.Which category describes outcomes that are expressed using numerical values?

non-numerical attributesnumerical variablesanticipated elementsdocumented variables

8.How is the cost, like the $6000 salvage value of an old machine, categorized?

9.What term describes the choices a company makes regarding which products to produce and sell, as well as the quantities across multiple product lines?

10.What is the structured approach called that involves making decisions using both quantitative and qualitative evaluations?

11.Which of the following is an example of a qualitative factor?

employee satisfactionmaterial expenseslabor wagesadvertising costs

12.What is the term for the cost difference that arises when comparing different alternatives?

13.Which type of financial factors are expressed in numerical form and have a specific monetary value?

14.Which of the following is an example of a quantitative factor?

Workplace employee conductLevel of employee contentmentEmployee enthusiasmExpense of raw materials

15.What type of decision involves choosing between producing internally or purchasing from an external supplier?

decisions related to demand or supplymake or buy decisionsdecisions that are relevant or irrelevantdecisions about idle time or workload

16.What is the third stage in the decision-making process?

linear forecastingdependent forecastingforecasting outcomesindependent forecasting

17.What term is used to describe costs that have already been incurred and cannot be recovered?

unaccounted expensesdocumented costssunk costsforfeited expenses

18.What term describes the cost incurred when funds are tied up in unused inventory instead of being invested elsewhere?

expenses related to foreign operationscosts associated with subcontracting workexpenses from internal resource usethe cost of missed alternative investments

19.Within general classifications, decision outcomes are grouped into which of the following categories?

20.What is the initial step in the decision-making process?

Recognize the problemDetermine the linear variableEstablish the certaintyIdentify the multiplier