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In situations when management must decide on accepting or rejecting one-time-only special orders,
where there is sufficient idle capacity, which one of the following is not relevant to the decision?
A. Direct costs.
B. Variable costs.
C. Incremental costs.
D. Absorption costs.
Answer: D
Explanation:
Choice "a" is correct. Absorption costs are not relevant in situations when management must decide on
accepting or rejecting one-time-only special orders, and where there is sufficient idle capacity. All of the
following costs are relevant in such situations:
B. Direct costs
C. Variable costs
D. Incremental costs
Jeff, a user, can no longer access the accounting file share, but others are still able to access the share. Which of the following would be the FIRST step in troubleshooting the issue?
A. Develop a probable cause theory.
B. Escalate the issue to the vendor.
C. Notify senior management of the issue.
D. Ask Jeff if anything has changed on the system.
Answer: D
You have just assumed management responsibility over an older network consisting of passive hubs and some layer 2 switches. The network is experiencing massive slow downs on an irregular basis. Which of the following is the MOST effective immediate solution to the problem?
A. Purchase and install a software based gateway.
B. Add bridges at key points in the network.
C. Purchase and install layer 3 switching equipment.
D. Segment your network into smaller domains.
Answer: C
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