In incremental analysis, ○ only variable costs are relevant. costs are not relevant if they change between alternatives. all costs are relevant if they change between alternatives. ○ only fixed costs are relevant.

In incremental analysis, ○ only variable costs are relevant. costs are not relevant if they change between alternatives. all costs are relevant if they change between alternatives. ○ only fixed costs are relevant.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 7Q: What is the basic premise underlying the high-low method of analyzing semivariable costs?

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Question

In incremental analysis,
○ only variable costs are relevant.
costs are not relevant if they change between alternatives.
all costs are relevant if they change between alternatives.
○ only fixed costs are relevant.

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Similar questions

4. In incremental analysis, Group of answer choices costs are not relevant if they change between alternatives. all costs are relevant if they change between alternatives. only fixed costs are relevant. only variable costs are relevant.
In incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.
3. Which of the following is correct regarding a relevant range? a Total variable costs will not change. b. Total flxed costs will not change. C Actual fixed costs usually fall outside the relevant range. d. The relevant range cannot be changed after being established.
Which of the following statements is false? (You may select more than one answer.)a. Under some circumstances, a sunk cost may be a relevant cost.b. Future costs that do not differ between alternatives are irrelevant.c. The same cost may be relevant or irrelevant depending on the decision context.d. Only variable costs are relevant costs. Fixed costs cannot be relevant costs.
What is the basic premise underlying the high-low method of analyzing semivariable costs?
CVP does not require that costs be accurately classified as fixed or variable. i. True ii. False. Give me answer
A general rule in relevant cost analysis is: O A. variable costs are always relevant. O B. fixed costs are always irrelevant. O C. Incremental future costs and revenues are always relevant. O D. depreciation is always irrelevant.
For a cost to be relevant to decision-making, it must be: in the future and differ among alternatives only be in the future O only has to differ among alternatives be larger in dollar amount than a specified limit O None of these is correct.
Consider the following statements concerning costs. 1. A committed cost cannot vary with the decision. 2. An outlay cost cannot vary with the decision. Are the above statements true or false?
(a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is true
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.
relevant costs are always: a.variable costs b.avoidable costs c.sunk costs d.fixed costs