Use the Information Below to Answer the Following Question(s)

question 69

Multiple Choice

Use the information below to answer the following question(s) .Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August:

-Using standard costs simplifies the calculations for which of the following in process-costing?

• A)direct materials
• B)conversion costs
• C)equivalent units
• D)direct materials and conversion costs but standard costs not relevant for equivalent units
• E)direct materials and conversion costs and equivalent units

Understand the importance of only including relevant costs and benefits in project analysis.

Identify what constitutes an incremental cash flow for the purposes of capital budgeting.

Recognize that sunk costs and expenses not directly related to the project should not influence the project's cash flow analysis.

Recognize and calculate the impact of erosion when evaluating new projects.

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Definitions:

Asset Beta

A measure of the risk of a firm's assets without the impact of debt, used to estimate the cost of equity in the capital asset pricing model (CAPM).

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification. Also known as market risk or undiversifiable risk.