For Each of the Following Decisions,identify If It Applies to a Financial

question 38

Essay

For each of the following decisions,identify if it applies to a financial accounting (FA)or a managerial accounting (MA)decision maker.Your answer should be either FA or MA.Include only one choice for each accounting decision.
$\begin{array}{|l|l|}\hline& \text { Decision Maker (FA or } \\\text { Accounting Decision } &\text {MA})\\\hline\text { Should the business expand } & \\\text { to a new location? } & \\\hline \text { Is the business profitable? } & \\\hline \text { How do actual costs compare } & \\\text { to budgeted costs? } & \\\hline \text { Should I invest in the } & \\\text { business? }\\\hline\end{array}$

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Definitions:

Lowest Average Profit

The minimum average profit realized over a specified period.

Purchase Quantity

The number of units of a product that consumers buy over a specified period.

Tornado Chart

A graphical method used to display the sensitivity of a result to changes in its input variables, usually in the form of a horizontal bar chart.

NPV

Net Present Value, a calculation used to assess the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period of time.