What steps are frequently involved in management’s decision-making process?

Define stress and describe the physiological stress response.

Summarize the main ideas of John Wycliffe.

Identify: John C. Calhoun, John Marshall, Francis C. Lowell, Eli Whitney, Frederick Douglass, Denmark Vesey, Nat Turner, Henry Clay.

Alma Ortiz does not understand why the overhead volume variance indicates that fixed overhead costs are under- or overapplied. Clarify this matter for Alma.

What is the purpose of computing the overhead volume variance? What is the basic formula for this variance?

As a study aid, your classmate Pascal Adams has prepared the following list of statements about decision-making and incremental analysis.

1. The first step in management’s decision-making process is, “Determine and evaluate possible courses of action.”
2. The final step in management’s decision-making process is to actually make the decision.
3. Accounting’s contribution to management’s decision-making process occurs primarily in evaluating possible courses of action and in reviewing the results.
4. In making business decisions, management ordinarily considers only financial information because it is objectively determined.
5. Decisions involve a choice among alternative courses of action.
6. The process used to identify the financial data that change under alternative courses of action is called incremental analysis.
7. Costs that are the same under all alternative courses of action sometimes affect the decision.
8. When using incremental analysis, some costs will always change under alternative courses of action, but revenues will not.
9. Variable costs will change under alternative courses of action, but fixed costs will not.

Instructions Identify each statement as true or false. If false, indicate how to correct the statement.

A sports team has 7 players. In how many ways can the team select a captain and junior captain?

What are the advantages of group decision-making?

What are the advantages and disadvantages of group decision making and individual decision making?

If the $9 per hour overhead rate in Question 12 includes$5 variable, and actual overhead costs were $248,000, what is the overhead controllable variance for June? The normal capacity hours were 28,000. Is the variance favorable or unfavorable?

What type of balance will exist in the variance account when (1) the materials price variance is unfavorable and (2) the labor quantity variance is favorable?

May standard costs be used in preparing financial statements for stockholders? Explain.

athan T Corporation is comparing two different options. Nathan T currently uses Option 1, with revenues of $65,000 per year, maintenance expenses of$5,000 per year, and operating expenses of $26,000 per year. Option 2 provides revenues of$60,000 per year, maintenance expenses of $5,000 per year, and operating expenses of$22,000 per year. Option 1 employs a piece of equipment which was upgraded 2 years ago at a cost of $17,000. If Option 2 is chosen, it will free up resources that will bring in an additional$4,000 of revenue. Complete the following table to show the change in income from choosing Option 2 versus Option 1. Designate Sunk costs with an “S.”