1. Question: (TCO 9) To guide cost allocation decisions,the benefits-received criterion
2. Question: (TCO 9) A challenge to using cost-benefit criteria for allocating costs isthat
3. Question: (TCO 9) The MOST likely reason for NOT allocating corporate costs todivisions include that
4. Question: (TCO 9)Identifying homogeneous cost pools
5. Question: (TCO 9) The Hassan Corporation has an electric mixer division and an electric lamp division. Of
a $20,000,000 bond issuance, the electric mixer division used
$14,000,000 and the electric lamp division used $6,000,000 for
expansion. Interest costs on the bond totaled $1,500,000 for the year. What amount of interest costs should be allocated to the electric lamp division?
6. Question: (TCO
10) All of the following are methods that aid management in
analyzingthe expected results of capital budgeting decisions EXCEPT the
7. Question: (TCO
10) Assume your goal in life is to retire with $1.5 million. Howmuch
would you need to save at the end of each year if interest ratesaverage
5% and you have a 25-year work life?
8. Question: (TCO 10) Thedefinition of an annuity is
9. Question: (TCO
10) A "what-if" technique that examines how a result will change ifthe
original predicted data are not achieved or if an underlying
assumptionchanges is called
10.Question: (TCO
10) Shirt Company wants to purchase a new cutting machine for itssewing
plant. The investment is expected to generate annual cash inflowsof
$300,000. The required rate of return is 12% and the current machine
isexpected to last for four years. What is the maximum dollar amount
ShirtCompany would be willing to spend for the machine, assuming its
life is alsofour years? Income taxes are not considered.
