ACCT 346 DeVry Week 6 Quiz 2 Different Sets
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Future cost<br />
Question 5. Question : A revenue that differs between alternatives is called a(n):<br />
Incremental revenue.<br />
Irrelevant revenue.<br />
Joint revenue.<br />
Opportunity revenue.<br />
Question 6. Question : Capital expenditure decisions<br />
are also called capital budgeting decisions.<br />
involve the acquisition of long-lived assets.<br />
have a major, long-term effect on a firm’s operations.<br />
All of the above are correct<br />
Question 7. Question : The rate of return that equates the present value of future cash flows to the investment<br />
outlay is the<br />
hurdle rate.<br />
internal rate of return.<br />
payback return.<br />
accounting rate of return.<br />
Question 8. Question : Which of the following is never considered in incremental analysis?<br />
Incremental revenue<br />
Sunk costs<br />
Incremental profit<br />
<strong>Different</strong>ial costs<br />
Question 9. Question : Which of the following is often not a differential cost?<br />
Direct labor<br />
Direct material<br />
Variable manufacturing overhead<br />
Fixed manufacturing overhead<br />
Question 10. Question : The required rate of return used to calculate an investment’s net present value is related<br />
to the firm’s<br />
contribution margin.<br />
cost of capital.<br />
depreciation methods.<br />
fixed costs.
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