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8/12/12

Kimmel, Accounting, 3/e

WileyPLUS

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WileyPLUS A ssignment Week Six E23-1 (a) E23-1 (b) E23-2 Review Score

E23-1 (a) Pender has prepared the following list of statements about decision making and incremental analysis. Identify each statement as true or false. 1. 2. 3. 4. 5. 6. 7. 8. 9. The first step in management's decision-making process is, "Determine and evaluate possible courses of action." The final step in management's decision-making process is to actually make the decision. Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results. In making business decisions, management ordinarily considers only financial information because it is objectively determined. Decisions involve a choice among alternative courses of action. The process used to identify the financial data that change under alternative courses of action is called incremental analysis. C osts that are the same under all alternative courses of action sometimes affect the decision. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not. Variable costs will change under alternative courses of action, but fixed costs will not. False False True False True True False False False

Review Results by Study Objective

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8/12/12
Kimmel, Accounting, 3/e

WileyPLUS

Help | System Announcements (1 Unread) Assignment >> Open Assignment

WileyPLUS A ssignment Week Six E23-1 (a) E23-1 (b) E23-2 Review Score

E23-1 (b) Pender has prepared the following list of statements about decision making and incremental analysis. Identify each statement as true or false. 1. The first step in management's decision-making process is, "Determine and evaluate possible courses of action." The final step in management's decision-making process is to actually make the decision. Accounting's contribution to management's decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results. In making business decisions, management ordinarily considers only financial information because it is objectively determined. Decisions involve a choice among alternative courses of action. The process used to identify the financial data that change under alternative courses of action is called incremental analysis. C osts that are the same under all alternative courses of action sometimes affect the decision. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not.

2. Review Results by Study Objective 3. 4. 5. 6. 7. 8.

For every false statement identified above indicate how to correct the statement.

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C lick here if you would like to Show Work for this question

By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 0 of 3 used

Copy right 2000-2012 by John Wiley & Sons, Inc. or related companies. All rights reserv ed.

License Agreement | Privacy Policy | 2000-2012 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Version 4.8.5 _3

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