Chapter 10 - True or False Flashcards

1
Q

If a business is considering buying a new vehicle, the cost of the insurance premium is
relevant to the business decision.

A

TRUE

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2
Q

Managerial accountants assist managers in the decision-making process by gathering
and analyzing relevant information.

A

TRUE

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3
Q

When considering whether to replace the building roof, the total amount paid for
previous roof repairs is relevant to the business decision.

A

FALSE

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4
Q

Target full product cost equals the revenue at the market price minus the desired profit.

A

TRUE

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5
Q

If a company has limited competition and sells unique products, it is considered a price
taker.

A

FALSE

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6
Q

Price-setters emphasize a target-pricing approach while price-takers emphasize a costplus pricing approach.

A

FALSE

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7
Q

Merchandisers are constrained by the size of their stores, and managers must choose
which products to display.

A

TRUE

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8
Q

Merchandisers should consider the contribution margin per unit of the constraint when
making sales mix decisions.

A

TRUE

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