Differential Analysis

Differential Analysis

Professional Development

10 Qs

quiz-placeholder

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Differential Analysis

Differential Analysis

Assessment

Quiz

Professional Development, Business

Professional Development

Medium

Created by

Michael Gorospe

Used 4+ times

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10 questions

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1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Defined as the cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Incremental cost

Opportunity cost

Sunk cost

Differential cost

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Future costs and benefits that do not differ between alternatives are ______ to the decision-making process.

qualified

relevant

considered

irrelevant

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Sunk costs are always ______ when choosing among alternatives.

irrelevant

relevant

considered

qualified

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Refers to the potential benefit that is given up when one alternative is selected over another.

Sunk Costs

Opportunity costs

Relevant Benefit

Differential Revenue

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Avoidable costs (and incremental costs) are always ______ costs.

relevant

irrelevant

considerable

qualified

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

This decision analysis methodology is focused on identifying the relevant costs and benefits of taking alternative vs another alternative—everything else was ignored.

sunk approach

differential approach

total cost approach

incremental approach

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A decision to carry out one of the activities in the value chain internally, rather than to buy externally from a supplier, is called

opportunity decision

crucial decision

a make or buy decision

tough decision

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