One possible capital budgeting decision is the potential acquisition of a patent from a competitor.

a.

TRUE

b.

FALSE

In net present value analysis, the purchase of equipment today results in a cash outflow that is not discounted.

a.

TRUE

b.

FALSE

If a company uses responsibility accounting, a shift supervisor in the Austin production plant should be held responsible for

a.

a share of all of the company's costs.

b.

direct costs incurred on the supervisor's shift.

c.

all costs associated with the Austin plant.

d.

direct material, direct labor, and all manufacturing overhead incurred on the supervisor's shift

Which of the following determines the level of decentralization in a company?

a.

The extent of decision-making authority given to the subunit managers

b.

The globalization of the company's sales

c.

The diversity of the company's products

d.

The number of levels of employees and management in the company

If a company has no fixed costs, variable costing income will equal full costing income, regardless of any increase or decrease in inventory levels during the period.

a.

FALSE

b.

TRUE