1. In what circumstances is incremental analysis inappropriate?

A. A make or buy decision B. An allocation of limited resource decision C. Elimination of an unprofitable segment D. Analysis of manufacturing variances

2. In incremental analysis, which of the following is true?

A. Only costs are analyzed B. Only revenues are analyzed C. Both costs and revenues may be analyzed D. Both costs and revenues that stay the same between alternate courses of action will be analyzed

3. What is the effect of using standard costs?

A. Can make management planning more difficult B. Promotes greater economy C. Does not help in setting prices D. Weakens management control

4. Which is true regarding the balanced scorecard approach? (Points : 2)

A. Uses only financial measures to evaluate performance. B, Uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility. C. Normally sets the financial objectives first, and then sets objectives in the other perspectives to accomplish the financial objectives. D. Evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.