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 order to make well-informed decisions, the main goal of incremental analysis is to evaluate the…

Answered: In incremental analysis, ○ only…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1MC: ______ are the costs associated with not choosing the other alternative. A. Sunk costs B....

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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.
‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs according to their nature and usage. Variable costs are controllable, on contrary fixed costs are not’. Do you agree with this statement? Justify.
‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs according to their nature and usage. Variable costs are controllable, on contrary fixed costs are not’. Do you agree with this statement? Why?
What is the basic premise underlying the high-low method of analyzing semivariable costs?
Q. a) What is meant by an activity base when dealing with variable costs? Give several examples of activity bases.b) Only variable costs can be differential costs. Do you agree? Explain.c) Does the concept of the relevant range apply to fixed costs? Explain.
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.
“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do youagree? Explain
The following statements are correct excerpt? O A. Only avoidable costs are relevant for decision making B. Incremental cost may include both variable and fixed costs OC. All irrelevant costs are sunk costs OD. All direct or indirect cost depends on the cost object
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.

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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.