31. A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to
a. assign responsibility
... [Show More] for the decision.
b. provide relevant revenue and cost data about each course of action.
c. determine the amount of money that should be spent on a project.
d. decide which actions that management should consider.
Ans: B, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision
Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
32. Which of the following stages of the management decision-making process is improperly sequenced?
a. Evaluate possible courses of action → Make decision.
b. Assign responsibility for the decision → Identify the problem.
c. Identify the problem → Determine possible courses of action.
d. Assign responsibility for decision → Determine possible courses of action.
Ans: B, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking, AICPA FN: Decision
Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
33. Internal reports that review the actual impact of decisions are prepared by
a. department heads.
b. the controller.
c. management accountants.
d. factory workers.
Ans: C, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting,
AICPA PC: Problem Solving, IMA: Performance Measurement
34. Which of the following steps in the management decision-making process does not generally involve the managerial
accountant?
a. Determine possible courses of action
b. Make the appropriate decision based on relevant data
c. Prepare internal reports that review the impact of decisions
d. None of these
Ans: B, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision
Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
35. Which is the first step in the management decision-making process?
a. Determine and evaluate possible courses of action.
b. Review results of the decision.
c. Identify the problem and assign responsibility.
d. Make a decision.
Ans: C, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision
Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
36. Which of the following will always be a relevant cost?
a. Sunk cost
b. Fixed cost
c. Variable cost
d. Opportunity cost
Ans: D, SO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Decision
Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
37. Costs that will differ between alternatives and influence the outcome of a decision are a. sunk costs.
b. unavoidable cost [Show Less]