Which of the following about the residual switch cost is true? a. The residual switch cost decreases and disappears the longer you prepare for a task. b. The preparation effect shows that the residual switch cost only applies to difficult tasks. c. The residual task - switch cost is higher than the task - switch cost. d. The task - switch cost is equal to the residual task - switch cost. e. Preparation time does not eliminate residual switch cost.

Which of the following about the residual switch cost is true? a. The residual switch cost decreases and disappears the longer you prepare for a task. b. The preparation effect shows that the residual switch cost only applies to difficult tasks. c. The residual task - switch cost is higher than the task - switch cost. d. The task - switch cost is equal to the residual task - switch cost. e. Preparation time does not eliminate residual switch cost.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

See similar textbooks

Similar questions

Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
Disadvantages of activity-based costing include which of the following? a. It is not acceptable under GAAP for external reporting. b. It can be costly to implement. c. It can be used in activity-based management. d. Both a. and b.
When using the general methods to estimate cost behavior, A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.
Marginal Costing is a technique of _____. a. Cost Reduction b. Cost Evaluation c. Cost Control d. Cost Measurement
The optimal quantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time order? How carrying and ordering cost is related to each other?
If costs are not responsive to changes in activity level, then these costs can be best described as a. mixed. b. flexible. c. variable. d. fixed.
Variable costs per unit are affected by an increase or decrease in activity. True or False True False
Which of the following is a limitation of activity-based costing? More cost pools Poorer management decisions Less control over overhead costs Some arbitrary allocations continue
When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.
Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether the parameters are different from zero. b) It provides a range of values instead of a single prediction. c) It measures the degree of association between cost and activity output. d) It shows the difference between predicted and actual costs.
Optimal replacement interval is negatively correlated with which of the following? a. First cost b. Operating and maintenance cost c. MARR d. None of the above.
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.