21. Which is the first step in the management decision-making process? A) Determ

Question

21. Which is the first step in the management decision-making process?
A) Determine and evaluate possible courses of action.
B) Review results of the decision.
C) Identify the problem and assign responsibility.
D) Make a decision.

22. Which one of the following does not affect a make-or-buy decision?
A) Variable manufacturing costs
B) Opportunity costs
C) Incremental revenue
D) Direct labor

23. In a make-or-buy decision, opportunity costs are
A) added to the make total cost.
B) deducted from the make total cost.
C) added to the buy total cost.
D) ignored.

24. If a company must expand capacity to accept a special order, it is likely that there will be
A) an increase in unit variable costs.
B) no increase in fixed costs.
C) an increase in variable and fixed costs per unit.
D) an increase in fixed costs.

25. Which decision will involve no incremental revenues?
A) Make or buy decision
B) Drop a product line
C) Accept a special order
D) Additional processing decision

Explanation / Answer

21. Which is the first step in the management decision-making process? C) Identify the problem and assign responsibility. 22. Which one of the following does not affect a make-or-buy decision? C) Incremental revenue 23. In a make-or-buy decision, opportunity costs are A) added to the make total cost. 24. If a company must expand capacity to accept a special order, it is likely that there will be D) an increase in fixed costs. 25. Which decision will involve no incremental revenues? B) Drop a product line

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