Question

Answer Multiple choice questions below.

72. Which of the following adjectives describes higher quality information? I Complete II Costly to develop III Relevant a. I and II only b. and III only c. I, II, and III d. I and III only LO 3 73. Higher quality reports are more I Relevant II Understandable III Available a. I and II only b. I and III only c. II and III only d. I, II, and III LO 3 74. The process of making higher quality business decisions requires each of the following except: Distinguishing between relevant and irrelevant information Recognising and evaluating assumptions Relying on gut instinct to make decisions more quickly Considering organisational values and core competencies a. b. c. d. LO 3 75. Irrelevant information may be: I Useful in decision making II Internally-generated III Accurate a. I only b. I and II only c. II and III only d. None of the above LO 2 76. Whether a given type of information is relevant or irrelevant depends on a. Whether it is expressed in financial terms b. Its objectivity c. Its relation to the decision to be made d. Its accuracy LO 2 77. In a decision to lease premises or to build office space in Brisbane, which of the following is relevant? The cost of office space for sale in Melbourne The costs associated with construction of the new office space. The age of the employees currently working for the company The personal preferences of the decision maker a. b. c. d. LO 2 78. Frank is considering transportation modes to a client's office. He can drive his own car at an incremental cost of $0.75 per kilometre, or take a company car. If he takes his own car, he can be reimbursed $0.55 per kilometre. If Frank makes his decision strictly from his personal economic point of view, what is the relevant net cost associated with driving his own car? a. $0.75 b. $0.20 c. $0.55 d. $0.00 LO 2

Answer 1

72. d. Only I and III. Higher quality information should be complete and relevant

73.a. Only I and II. Higher quality reports are more relevant and understandable

74. c.  The process of making higher quality business decisions requires each of the following except following your gut instinct to make decisions more quickly

75.d. Irrelevant information may be ..none of the above

76.c. whether a given type of information is relevant or irrelevant depends upon its relation to the decision to be made

77.b. the cost associated with construction of new office space

78.b. $0.20 per kilometre