Multiple choice pick correct answers. 11. Fixed costs can be: a. Irrelevant costs b. Sunk costs c. Relevant costs d. All of the above 12. Qualitative factors for choosing to buy, rather than make, materials include: a. Intellectual property b. Delays c. Cultural differences d. All of the above 13. Some reasons why a company may choose to decentralize include: a. Lack of congruence b. Duplication of efforts c. Efficient decision making d. Regulation 14. A balanced scorecard assess performance on: a. Internal processes b. Board of Directors selection c. Diversity d. Number of employees 15. The calculation for Direct Material Purchases budget is: a. Expected Sales in Units + Desired Ending Inventory of finished goods - Beginning inventory of finished units b. Expected Sales in Units + Cost per unit c. Amount required for production + Desired ending inventory of direct material - Beginning inventory of direct materials d. Variable Costs + Fixed Costs x Sales 16. Variances can occur in budgets due to: a. Buying inferior materials at a price lower than standard b. The company is producing more units than required c. The company has more employees than are needed to meet production goals d. All of the above 17. A _______ is the cost of or the money used in acquiring fixed assets, adding a component, or replacing a component of a fixed asset to aid in the generation of revenue for more than a year. a. capital investment b. dividend c. common stock d. preferred stock 18. This ratio is a financial measure of a company's short-term obligations a. Debt to Asset Ratio b. Current Ratio c. Quick Ratio d. Net Profit Ratio 19. To determine if a company is solvent means it has enough funds to pay its long-term obligations. The information to calculate the Debt to Asset Ratio comes from a. The Income Statement b. The Balance Sheet c. The Statement of Cash Flows d. The Company's Bank Account 20. If I conducted a vertical variance analysis on an Income Statement and the results for Technology was 9%, what does that mean? a. The company exceeded the budget for Technology by 9% b. 9% of the company's spending is on Technology c. More should be spent on Technology d. Technology is under budget