TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false

1) The first step in the decision-making process is to identify the alternatives.

2) The managerial accountant's primary role in the decision-making process is to decide what information is relevant to the problem and provide timely and accurate data.

3) In the final analysis of a decision, quantitative measures are more important than qualitative measures.

4) The concept of a relevant cost can be defined as a past cost that differs among alternatives.

5) In most all decisions, joint costs are relevant costs.

MULTIPLE CHOICE. (show calculations if it needs)

6) At which step or steps in the decision-making process do qualitative considerations generally have the greatest impact?

A) Making a decision.

B) Developing a decision model.

C) Specifying the criterion and identifying the alternatives.

D) Identifying the alternatives.

7) An accounting information system should be designed to provide information that is useful. To be useful the information must be:

A) qualitative rather than quantitative.

B) unique and unavailable through other sources.

C) historical in nature and not purport to predict the future.

D) relevant, accurate, and timely

12) Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $45,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $23,000. There the goods could be sold for $80,000. What alternative is more desirable and what is the relevant cost for that alternative?

A) Clean and ship to outlet center, $23,000.

B) Clean and ship to outlet center, $148,000.

C) Clean and ship to outlet center, $103,000.

D) Sell "as is," $125,000.

13) Allison is contemplating a job offer with an advertising agency where she will make $54,000 in her first year of employment. Alternatively, Allison can begin to work in her father's business where she will earn an annual salary of $38,000. If Allison decides to work with her father, the opportunity cost would be:

A) $54,000.

B) $38,000.

C) $92,000.

D) $0.

19) Product costs incurred before the split-off point in a joint processing environment are called:

A) non-relevant costs

. B) joint product costs.

C) spoilage costs.

D) separable processing costs.