Question
As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis. Identify each statement as true
As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis. Identify each statement as true or false.
1. | The first step in managements decision-making process is, Determine and evaluate possible courses of action. | select an option TrueFalse | |||
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2. | The final step in managements decision-making process is to actually make the decision. | select an option TrueFalse | |||
3. | Accountings contribution to managements decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results. | select an option TrueFalse | |||
4. | In making business decisions, management ordinarily considers only financial information because it is objectively determined. | select an option TrueFalse | |||
5. | Decisions involve a choice among alternative courses of action. | select an option FalseTrue | |||
6. | The process used to identify the financial data that change under alternative courses of action is called incremental analysis. | select an option TrueFalse | |||
7. | Costs that are the same under all alternative courses of action sometimes affect the decision. | select an option TrueFalse | |||
8. | When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not. | select an option TrueFalse | |||
9. | Variable costs will change under alternative courses of action, but fixed costs will not. | select an option FalseTrue |
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