5 Finance and Managerial Accounting questions for my review sheet! i rate well.

Question 24

Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month. How many units will need to be purchased in February if the company's policy is to keep ending inventory each month at 10,000 units?

		A. 52,000 units
		B. 54,000 units
		C. 62,000 units
		D. None of these answers is correct.

Question 25

Select the correct statement regarding relevant revenues.

A. Relevant revenues must not differ between the alternatives being considered.

B. Past or future revenues may be relevant.

C. Relevant revenues must make a difference in the decision under consideration.

D. Revenues are not considered relevant in the same way as relevant costs.

Question 26

Jack currently works for a law firm full time and earns $60,000 a year. He is thinking of quitting his job to pursue a medical degree. Medical school will cost him $100,000 per year. If Jack quits his job and goes to medical school, the salary he currently earns would be considered what type of cost?

A. Irrelevant cost

B. Sunk cost

C. Opportunity cost

D. Fixed cost

Question 27

Nature's Soap manufactures Bar soap and Liquid soap. Of the following costs, which would be an indirect cost to the Liquid Department?

A. Liquid manager's salary

B. Manufacturing plant insurance

C. Depreciation of the liquefying equipment

D. Liquid Fragrance

Question 28

The type of planning that involves long term decisions, such as defining the scope of the business and deciding what products to make is known as:

		A. Continuous planning
		B. Strategic planning
		C. Capital budgeting
		D. Operations budgeting