FAR — Financial Accounting & Reporting — Quiz 84

Questions in this quiz (10)

1. Which of the following best defines relevant costs?

   • Costs that differ between alternatives
   • Costs already incurred
   • Costs that remain unchanged
   • Costs unrelated to decisions

2. Which of the following is not relevant to decision-making?

   • Opportunity cost
   • Future variable costs
   • Sunk costs
   • Incremental costs

3. Which managerial accounting approach focuses on eliminating waste and improving efficiency?

   • Lean accounting
   • Financial accounting
   • Ratio analysis
   • Cash flow analysis

4. Which statement best describes managerial accounting's role?

   • Preparing tax returns
   • Supporting planning and operational decisions
   • Reporting to external users
   • Eliminating financial risk

5. Which of the following best describes incremental cost?

   • Past cost
   • Additional cost from a decision
   • Fixed production cost
   • Average cost per unit

6. Which of the following best defines incremental revenue?

   • Revenue already recorded
   • Additional revenue from a decision
   • Deferred revenue
   • Unearned revenue

7. Which decision typically requires incremental analysis?

   • Recording depreciation
   • Accepting a special order
   • Preparing tax returns
   • Paying rent

8. Which of the following best describes relevant range?

   • Period of accounting
   • Activity level where cost assumptions hold
   • Range of product prices
   • Sales revenue range

9. Which cost remains constant within the relevant range?

   • Variable cost
   • Fixed cost
   • Mixed cost
   • Incremental cost

10. Which cost changes directly with production level?

    • Fixed cost
    • Variable cost
    • Sunk cost
    • Opportunity cost