Managers use customer$-$profitability analysis to ensure that

a$.$ unpaid invoices are categorized according to age by due date.

b$.$ customers making large contributions to the operating income of a company receive a high level

of attention from the company.

c$.$ customers that generate operating losses are immediately dropped.

d$.$ cost allocation of indirect cost is in place.

The internal rate of return $($IRR$)$ for a project can be determined

a$.$ By finding the discount rate that yields the net present value $($NPV$)$ of zero for the project.

b$.$ By subtracting the firm's cost of capital from the net present value $($NPV$)$ rate used for the

project.

c$.$ Only if the project's cash flows are an annuity.

d$.$ Only if the project's profitability index is greater than one.

The costs of work performed in previous departments that are transferred into the current

department are called:

a$.$ Beginning inventory.

b$.$ Work$-$in$-$Process inventory.

c$.$ Transferred$-$in costs.

d$.$ Cost of good manufactured.

An important skill of today's management accountant is:

a$.$ Increasing sales.

b$.$ Knowledge of business operations.

c$.$ Lowering expenses.

d$.$ Accurate marketing forecasts.

The direct method of departmental cost allocation is the simplest of the three methods because it:

a$.$ Allocates only direct costs.

b$.$ Uses a sequence of steps to allocate operating department costs.

c$.$ Allocates service department costs to service departments.

d$.$ Ignores reciprocal flows of service departments when allocating costs.