Managerial Accounting - Exam 3

The fist step in management's decision-making process is, "Determine and evaluate possible courses of action."

• True

• False

Variable costs will change under alternative courses of action, but fixed costs will not

• True

• False

Decisions involve a choice among alternative courses of action

• True

• False

The process used to identify the financial data that change under alternative courses of action is called incremental analysis

• True

• False

Determine the target cost for the filter. Target cost per unit $_____

Target selling price $____

Markup percentage ___%

Determine the target cost for one LittleLaser. Target cost $___

Compute the total unit cost.

Compute the desired ROI per unit.

Compute the markup percentage using total cost per unit.

Compute the target selling price.

Evaluate responses using AI:

OFF

Answer explanation

Total cost per unit $60

Desire ROI per unit $15

Markup percentage 25%
Target selling price $75

Do an incremental analysis

Evaluate responses using AI:

OFF

Answer explanation