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Chapter 19 Quiz 4
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1
One of the four common mistakes that are made when using accounting data for decision making is that managers and management accountants tend to forget about sunk costs:
A)True
B)False
2
The term outsourcing is sometimes used interchangeably with make-or-buy, as it involves choosing to source goods or services either inside or outside the firm. However, outsourcing tends to imply more short-term arrangements:
A)True
B)False
3
A key assumption in analysing a special order decision is that it is a once-only decision:
A)True
B)False
4
Relevant information may consist of both qualitative and quantitative information:
A)True
B)False
5
Opportunity costs are those incremental costs that will be incurred if a particular course of action is selected:
A)True
B)False
6
Equipment used in producing an order has a book value of $5000. This book value is a sunk cost and is therefore relevant to decision making:
A)True
B)False
7
Accuracy is all important in the decision making process:
A)True
B)False





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