Chapter 10 - True or False Flashcards
If a business is considering buying a new vehicle, the cost of the insurance premium is
relevant to the business decision.
TRUE
Managerial accountants assist managers in the decision-making process by gathering
and analyzing relevant information.
TRUE
When considering whether to replace the building roof, the total amount paid for
previous roof repairs is relevant to the business decision.
FALSE
Target full product cost equals the revenue at the market price minus the desired profit.
TRUE
If a company has limited competition and sells unique products, it is considered a price
taker.
FALSE
Price-setters emphasize a target-pricing approach while price-takers emphasize a costplus pricing approach.
FALSE
Merchandisers are constrained by the size of their stores, and managers must choose
which products to display.
TRUE
Merchandisers should consider the contribution margin per unit of the constraint when
making sales mix decisions.
TRUE