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True/False1. Budgets do not take into account potential constraints?2. ROI, redsidual income, and economic value added all represent performance measures that can be utilized to determine investment center performance?3. Although expensive to install and maintain, a standard cost accounting system can save a company considerable amounts of money by reducing waste?4. The standard overhead cost is the sum of the estimates of variable and fixed overhead cost in the next accounting period?5. The objective of sales mix decision is to select the alternative that maximizes the contribution margin per constrained resource?6. Capital investment analysis is also known as capital budgeting?7. Availability of funds is not the criteria for deciding on the capital investment proposals?8. The proposals with the highest rank are funded first in the capital investment decisions?9. The cost of debt, the cost of preferred stock, the cost of common stock and the cost of retained earnings are the components of cost of capital?10. It is realistic to assume that a total revenue line will curve rather than be strait?11. If engineers determine that a product can be produced for less than its target cost then production of the product should not be undertaken?12. Transfer pricing can create problems if a company division can sell its output outside the company rather than transfer its output to another division within the company?13. The market price need not be included int he analysis of a transfer price if the semi-finished product can be purchased in a similar condition by the buying division.14. Many traditional management information systems do not produce meaningful results for today’s business environment?15. Benchmarking and process mapping are two methods to measure quality?16. Quality in manufacturing simply means a product has to be dependable and free of defects?17. Vertical analysis will result in common-size statements.18. A 20 percent change in net sales will result in a 20 percent change in net income
True/False1. Budgets do not take into account potential constraints?False 2. ROI, redsidual income, and economic value added all represent performance measures that can be utilized todetermine…
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