2 . ( TCO 9 ) What are five different types of decisions that could use incremental analysis ? What are the relevant costs in a make-or-buy decision ? ( Points : 26 )
3 . ( TCO 10 ) How is a transfer price determined ? Describe the cost-based method . Do you think it is better than the market-based method ? ( Points : 26 )
4 . ( TCO 11 ) What are direct materials ? Give an example of a direct material . How do direct materials differ from indirect materials ? Give an example of an indirect material . ( Points : 26 )
1 . ( TCO 5 ) What is CVP analysis ? Why is this an important analysis for a company to perform ? ( Points : 26 )
2 . ( TCO 6 ) What is an operating budget ? What does it result in ? What is the first step in completing an operating budget ? ( Points : 26 )
3 . ( TCO 7 ) What is responsibility accounting ? What is a cost center ? How does a cost center differ from a profit center ? ( Points : 26 )
( 1 ) What is the accounting equation ? Suppose your company paid $ 6,000 in cash for its rent . How does this transaction impact the accounting equation ?
( 2 ) What are the four basic financial statements ? Describe the statement of cash flows , and explain why it is important .
( 3 ) What is the Sarbanes-Oxley Act ? Why is it important to the accounting profession ?
( 4 ) How does vertical analysis of financial statements differ from horizontal analysis ? Which method do you think is a better analysis tool ?
( 5 ) Why is capital budgeting important ? What is the net present value method ? How do you know whether to accept a project using this method ? ( Points : 26 )