Question

True/False Answer all questions. Write out the word True or False in the space provided. ( 2 Pts. Ea.) 1. Standard Costs serve as a device for measuring efficiency. 2. The Standard cost is how much a product should cost to manufacture. 3. Standard costs should always be revised when they differ from actual costs. 4. Changes in technology, machinery, or production methods may make past cost data irrelevant when setting standards. 5. Differential revenue is the amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative. 6. A cost that will not be affected by later decisions is termed a Sunk Cost. 7. The amount of income that would result from an alternative use of cash is called opportunity cost. 8. Make or buy decisions should be made only with related parties. 9. The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called cost-volume-profit analysis. two 10. The methods of evaluating capital investment proposals can be grouped into general categories; methods that ignore present value and present value methods. 11. Methods that ignore present value in capital investment analysis include the net present value method. 12. Average rate of return equals estimated average annual income divided by average investment.

Answer 1

Solution:-

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1	TRUE
2	TRUE
3	FALSE
4	TRUE
5	TRUE
6	TRUE
7	TRUE
8	FALSE
9	FALSE
10	FALSE
11	FALSE
12	TRUE

Answer 2

Indicate whether a statement is true or false as follows 1 Standard Costs serve as a device for measuring efficien TRUE 2 The Standard cost is how much a product should cost to manufacture TRUE 3 Standard costs should always be revised when differ from actual costs FALSE 4 Changes in technology, machinery, or pr methods may make past cost data irrel evant when setting standar ds TRUE Differential revenue is the amount of increase or decrease in revenue expected from a particul ar course of action as compared with an alternative. TRUE 6 A cost that will not be affected by later decisi ons is termed a Sunk Cost TRUE The amount of income that woul d result from an alternative use of cashis called cost. TRUE 8 Make or buy decisi ons should be made only with related parties FALSE 9 The process by which management pl ans evaluates, and controls long-term investment decisions involving fixed assets is called cost volume-profit analysis FALSE 10 The methods of evaluating capital investment proposals can be grouped into general categories methods that ignore present value and present value methods TRUE 11 Methods that ignore present value in capital investment anal ysis include the net present value method. FALSE 12 Average rate of return equals estimated average annual income divided by average investment TRUE