What is the process of evaluating financial data that change under alternative courses of action?

What is the process of evaluating financial data that change under alternative courses of action?

CHAPTER 6

INCREMENTAL ANALYSIS

SUMMARY OF QUESTIONS BY OBJECTIVES AND BLOOM’S TAXONOMY

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True-False Statements

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2.1K9.3C 16.6C23.2K30.2K

3.2C10.4C17.6C24.3C31.4K

4.2K11.4K18.7C25. 5K32.6K

5.1K12.4C19.7C26.7C

6.2C13.5C20.8C27.4K

7.3C14.5 C21.8C28.2C

Multiple Choice Questions

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46.1K59.2C72.3AN 85.7AN98.4C

47.1K60.3AP73.3AN86.7AP99.4AN

48.1K61.2C74.4AN87. 7AN 100.5AP

49.2K62.3C75.5AN88. 8AN101.5AN

50.1C63.3C76.4C89. 8C102.5 AN

51.2K64.3C77.5AN90. 8AN103.4K

52.2C65.3C78.5C91.3 AP104.3K

53.2 C66.4K79.5AN92.4C105.5AN

54.2K67.4C80.6C93.7AN106.6C

55.2K68.4C 81.6C94.8AP107.4AN

56.2C69.4AP82.6C95.4K

57.2C70.4AN83.6C96.4AP

Brief Exercises

108.4AP112.7AP116.2AP120.7AN

109.4AP113.8AP117.8AN121.4AN

110.4AP 114.4AP118.3AP122.5AN

111.7AP115.6AN119.4AP123.7AN

Exercises

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125.7AP128.3AN131.4AN134.6E137.8E

126.3,4AN129.3E132.4 E135.7E138.8E

Completion Statements

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Matching

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Short Answer Essay Questions

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Which statement is true about relevant costs in incremental analysis?

Which statement is true about relevant costs in incremental analysis? All costs are relevant if they change between alternatives.

When deciding to retain or replace equipment the book value of the old equipment is considered to be a?

In the decision to retain or replace equipment, the book value of the old equipment is a sunk cost.

What is incremental analysis?

Incremental analysis is a decision-making technique used in business to determine the true cost difference between alternatives. Also called the relevant cost approach, marginal analysis, or differential analysis, incremental analysis disregards any sunk cost or past cost.