1. Which of the following statements is false? 1) Budgets foree managers to think ahout and pian fot the future. 11) Hudzers define goals and objective that can werve as benchmarks for evaluating, i) soscquent performance. C) Budgets eruble each department w fanction independently from other departments. b) Hudgeth corrumuicate management's plans theoughout the organization. 2. Fairoux Copporation has provided the following contribution fotmat income statememt. that the following infermation is within the relevant tange. The contriburion margin per unit is closest tok A) \\( \\$ 60.00 \\) B) \\( \\$ 39.00 \\) C) \\( \\$ 4.90 \\) D) \\( \\$ 21.00 \\) 3. Wivery deciston involves choosing between: A) Relevant and irrelevant labor costs. B) At least two alternatives. C) Relevant and irrelevant dircet materials costs. D) Relevant and irrelevant fixcd manufacturing overhead costs. 4. Taia Corporation is considering several investrient proposals, as shown below: \\begin{tabular}{llll} Investment Proposal & & \\\\ \\hline A & C & D \\\\ \\( \\$ 112,000 \\) & \\( \\$ 140,000 \\) & \\( \\$ 84,000 \\) & \\( \\$ 105,0 \\) \\\\ \\( \\$ 134,400 \\) & \\( \\$ 210,000 \\) & \\( \\$ 117,600 \\) & \\( \\$ 216,0 \\) \\end{tabular} Investment required Present value of future net cash flows 134,400 If the profitability be: \\( \\mathrm{D}, \\mathrm{B}, \\mathrm{C}, \\mathrm{A} \\) B) \\( B, D, C, A \\) C) \\( \\mathrm{B}, \\mathrm{D}, \\mathrm{A}, \\mathrm{C} \\) b) \\( A, C, B, D \\) hats and the direct labor wage rate is 517.00 . The direct labor-hours required per unit is 150 for April? (1) \\( \\$ 2,228,167 \\) B) \\( 52,2,30,767 \\) C) \\( 52,193,000 \\) D) \\( 52,244,000 \\) 6- Sunk costs are always: A) Variable costs. B) Irelevant costs. C) Differential costs. D) Fixed costs. 7. Assume a merchandising company is deciding whether to keep or drop one of the mamy product lines that it sclls at its retail stote location. Which of the following would be relevant to the decision? A) The general administrative expenses allocated from corporatc headquarters to this product line B) The rent paid for the company's retail space, a portion of which is allocated to this product line C) The contribution margin earned by this product line D) The store manager's salary 8- Axsume that a company buys a new machine for \\( \\$ 220,000 \\) that has a useful life of five year and a \\( \\$ 20,000 \\) salvage value. The new machine will replace an old machine that can be sold for a salvage value of \\( \\$ 10,000 \\). The machine will generate incremental contribution margin of \\( \\$ 42,000 \\) per year. The only fixed expense associated with the new machine is its annus depreciation of \\( \\$ 40,000 \\) per year. What is the payback period for this investrnent? A) 5.0 years B) 12.0 years C) 5.167 years D) 11.0 years