4 Financial and Managerial Accounting Questions for my review sheet! i rate well! thanks for your help!

Question 51

Which of the following would not be included in a selling and administrative expenses budget?

A. Budgeted salary expenses

B. Budgeted rent expense

C. Cash payments for selling and administrative expenses

D. Budgeted interest expense

Question 52

Select the incorrect statement regarding relevant costs and revenues.

A. To be relevant, a cost or revenue must be future-oriented and must differ between the alternatives.

B. Sunk costs are never relevant for decision-making purposes.

C. Differential revenues are expected future revenues that differ from past revenues.

D. Avoidable costs are also known as differential costs

Question 53

All of the following are examples of product-level costs except:

A. product inspection costs.

B. product advertising costs.

C. engineering design costs.

D. patent costs.

Question 54

Pilot Motors Corporation is an automobile manufacturer. The company produces its own motors, tires, and other automobile parts. Pilot has the opportunity to purchase tires from another manufacturer instead of producing them in their own facility. This type of decision is typically known as a(n):

		A. outsourcing decision.
		B. special order decision.
		C. segment elimination decision.
		D. asset replacement decision.