Kelley's Baskets makes handmade baskets for distribution to upscale retail outlets. The firm is currently considering making handmade wreaths

Kelley's Baskets makes handmade baskets for distribution to upscale retail outlets. The firm is currently considering making handmade wreaths as well. Which one of the following is the best example of an incremental operating cash flow related to the wreath project?    A.  storing supplies in the same space currently used for materials storage B.  utilizing the basket manager to oversee wreath production C.  hiring additional employees to handle the increased workload should the firm accept the wreath project D.  researching the market to determine if wreath sales might be profitable before deciding to proceed E.  planning on lower interest expense by assuming the proceeds of the wreath sales will be used to reduce the firm's currently outstanding debt Refer to section 10.1

11.

Danielle's is a furniture store that is considering adding appliances to its offerings. Which of the following should be considered incremental cash flows of this project? I. utilizing the credit offered by a supplier to purchase the appliance inventory II. benefiting from increased furniture sales to appliance customers III. borrowing money from a bank to fund the appliance project IV. purchasing parts for inventory to handle any appliance repairs that might be necessary    A.  I and II only B.  III and IV only C.  I, II, and IV only D.  II, III, and IV only E.  I, II, III, and IV Refer to sections 10.1 and 10.2

12.	The stand-alone principle advocates that project analysis should be based solely on which one of the following costs?    A.  sunk B.  total C.  variable D.  incremental E.  fixed Refer to section 10.1

13.

Which one of the following is an example of a sunk cost?    A.  $1,500 of lost sales because an item was out of stock B.  $1,200 paid to repair a machine last year C.  $20,000 project that must be forfeited if another project is accepted D.  $4,500 reduction in current shoe sales if a store commences selling sandals E.  $1,800 increase in comic book sales if a store commences selling puzzles Refer to section 10.2