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)