Accounting Final

Which of the following would NOT be considered a short-term business decision?

Buying new equipment versus remodeling old equipment

Using the information provided, what transaction represents the best application of the present value of an annuity due of $1?

Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year.

Which of the following is NOT a Disney segment?

Manufacturing and Processing

________ are the costs associated with not choosing the other alternative.

Opportunity costs

Which one of the following statements is true?

Opportunity costs are always relevant.

________ is the act of using another company to provide goods or services that your company requires.

Outsourcing

The managerial decision-making process has which of the following as its third step?

Perform a comprehensive differential (differential) analysis of potential solutions

You are considering buying a new vehicle by trading in your old vehicle. Which of the following costs is irrelevant?

The price you paid for your old car.

Which is an example of an opportunity cost?

The salary you give up by attending school full time after graduation.

When managerial accountants design an evaluation system that is based on criteria for which a manager is responsible, and it is structured to encourage managers to make decisions that will meet the goals of the company as well as their own personal job goals, the framework used is ________.

a responsibility accounting framework

The NPV method assumes that cash inflows associated with a particular investment occur when?

at any of these times

The process of reinvesting interest earned to generate additional earnings over time is ________.

compounding

The process that determines the present value of a single payment or stream of payments to be received is ________.

discounting

Goal congruence in well-designed performance measurement systems best explains a congruence between ________.

employees and the company

If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed?

future value of an ordinary annuity

The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion?

inventory turnover

Which of the following discounts future cash flows to their present value at the expected rate of return, and compares that to the initial investment?

net present value (NPV)

When operating in a constrained environment, which products should be produced?

products with the highest contribution margin per unit of the constrained process

The metrics based on nonfinancial information are known as ________.

qualitative factors

Which of the following is not a qualitative decision that should be considered in an outsourcing decision?

relevant costs

Which of the following measures the profitability of a division relative to the size of its investment in capital assets?

return on investment (ROI)

Capital investment decisions often involve all of the following except ________.

short periods of time

A good performance measurement system will include which of the following?

short-term and long-term goals

People affected by decisions made by a company, including investors, creditors, employees, managers, regulators, customers, suppliers, and laypeople, are known as ________.

stakeholders

A good performance measurement system will align the goals of management with ________.

the goals of the corporation, and both parties will benefit

The IRR method assumes that cash flows are reinvested at ________.

the internal rate of return

When using the NPV method for a particular investment decision, if the present value of all cash inflows is greater than the present value of all cash outflows, then ________.

the investment provides an actual rate of return greater than the discount rate

Performance measures are only useful if ________.

there is a baseline against which to compare the measured results

Components of the organization that are demotivating for purposes of performance management are known as ______

uncontrollable factors