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1. (TCO 8) Why is capital budgeting important? What is the net present value method? How do you know whether to accept a project using this method? (Points : 26)

2. (TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant costs in accepting an order at a special price? (Points : 26)

3. (TCO 10) How is a transfer price determined? Describe the cost-based method. Do you think it is better than the market-based method? (Points : 26)

4. (TCO 11) What is direct labor? Give an example of direct labor. How does direct labor differ from indirect labor? Give an example of an indirect labor. (Points : 26)

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1. (TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform? (Points : 26)

2. (TCO 6) What is the financial budget? Describe the two things that need to be prepared for the financial budget. (Points : 26)

3. (TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? (Points : 26)