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1) Which one of the following is non financial information that management might evaluate in making a decision?
A) opportunity cost of a decision
B) contribution margin
C) the effect on profit of a decision
D) the corporate profile in the community.

For which of the following decision is incremental analysis not appropriate?
A) determining cost behavior
B) an allocation of limited resource decision

2) It costs fortune company 12 for variable and 5 of fixed costs to produce one bathroom scale which normally sells for 35.00. A foreign wholesaler offers to purchase 1000 scales at 15.00 each. Fortune would incur special shipping costs of 1 per scale if the order were accepted. Fortune has sufficient unused capacity to produce the 1000 scales if the special order is accepted, what will be the effect on net income?
A) 2000 increase
B) 2000 decrease
C) 3000 decrease
D) 15000 increase

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M928780

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