Frank's is a furniture store that is

单选题 Frank's is a furniture store that is considering adding appliances to its offerings. Which one of the following is the best example of an incremental cash flow related to the appliances?

A、 Moving furniture to provide floor space for the appliances

B、 Paying the rent for the store

C、 Selling furniture to appliance customers

D、 Having the current store manager oversee appliance sales

E、 Using the store's billing system for appliance sales

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单选题 The option that is forgone so that an asset can be utilized by a specific project is referred to as which one of the following?

A、 Salvage value

B、 Wasted value

C、 Sunk cost

D、Opportunity cost

E、Erosion

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单选题 Which one of the following costs was incurred in the past and cannot be recouped?

A、 Incremental

B、Side

C、 Sunk

D、 Opportunity

E、 Opportunity

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单选题 GL Plastics spent $$1,200 last week repairing a machine. This week the company is trying to decide if the machine could be better utilized if they assigned it a proposed project. When analyzing the proposed project, the $$1,200 should be treated as which type of cost?

A、 Opportunity

B、 Fixed

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D、 Erosion

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单选题 The difference between a company's future cash flows if it accepts a project and the company's future cash flows if it does not accept the project is referred to as the project's:

A、 incremental cash flows.

B、 internal cash flows.

C、 external cash flows.

D、erosion effects.

E、 financing cash flows.

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单选题 Which one of the following is an example of a sunk cost?

A、 $1,500 of lost sales because an item was out of stock

B、 $1,200 paid to repair a machine last year

C、$20,000 project that must be forfeited if another project is accepted

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E、 $1,800 increase in comic book sales if a store ceases selling puzzles

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单选题 The stand-alone principle advocates that project analysis should be based solely on which one of the following costs?

A、Sunk

B、Total

C、Variable

D、Incremental

E、Fixed

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单选题 The fact that a proposed project is analyzed based on the project's incremental cash flows is the assumption behind which one of the following principles?

A、 Underlying value principle

B、Stand-alone principle

C、 Equivalent cost principle

D、 Salvage principle

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单选题 Kelley's Baskets makes handmade baskets and is currently considering making handmade wreaths as well. Which one of the following is the best example of an incremental operating cash flow related to the wreath project?

A、Storing supplies in the same space currently used for materials storage

B、 Utilizing the basket manager to oversee wreath production

C、Hiring additional employees to handle the increased workload should the firm accept the wreath project

D、Researching the market to determine if wreath sales might be profitable before deciding to proceed

E、Planning on lower interest expense by assuming the proceeds of the wreath sales will be used to reduce the firm's currently outstanding debt

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