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chapter 24
Analytics for Managerial
Decision Making
goals discussion goals achievement fill in the blanks multiple choice problems check list and key terms
1. Future costs that differ among alternative courses of action are known as costs.
2. costs are irrelevant in decision making.
3. means that a company has decided to acquire its goods from outside vendors rather than produce the same goods or services in-house.
4. The cost of a foregone alternative is termed .
5. The selling price minus all variable costs is termed the .
6. Expenditures related to programs and projects that influence financial performance of multiple accounting periods are termed expenditures.
7. The concept which relates to a dollar in hand being worth more than a dollar in the future is called the of money.
8. Future value concepts relate to interest, wherein interest is computed on principal plus previously computed interest.
9. is the name often given to the process of calculating the present value of future cash receipts.
10. Multiple level cash flows are termed .
11. The method requires the present value of an investment's cash inflows to be netted against the present value of the cash outflows.
12. The focuses on the average income generated by a project in relation to the project's initial investment outlay.
13. is a capital budgeting tool which computes the interest rate necessary to equate cash inflows and cash outflows.
14. The method is simple, yet it ignores the time value of money and cash flows which occur beyond a designated period of time.