Which of the following statements about the use of relevant cost analysis in decision making is true? O Future costs that do not differ between the alternatives may or may not be relevant in a decision. O Per-unit variable costs are always differential costs. O A production cost incurred before the split-off point in a joint process is relevant in a sell as-is or process further decision. O If a special order decision requires the use of capacity that is not idle, opportunity costs are zero.

Which of the following statements about the use of relevant cost analysis in decision making is true? O Future costs that do not differ between the alternatives may or may not be relevant in a decision. O Per-unit variable costs are always differential costs. O A production cost incurred before the split-off point in a joint process is relevant in a sell as-is or process further decision. O If a special order decision requires the use of capacity that is not idle, opportunity costs are zero.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.
Which of the following statements are false? SELECT ALL THAT APPLY a. One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is. b. A new fixed cost that must be paid if a special offer is accepted is not relevant in making the decision. c. A cost that will be incurred regardless of which course of action a manager takes is relevant to the manager's decision. d. Your Company is considering replacing Machine X. The original cost of Machine X is not relevant to this decision.
о Generally speaking, net operating income under variable and absorption costing will: Multiple Choice O always be equal. never be equal. be equal only when production and sales are equal. be equal only when production exceeds sales.
Which of the following statements regarding marginal costing is incorrect? Select one: O A. It is useful long-term planning technique OB. It assumes that fixed costs remain fixed over relevant activity ranges O C. It assumes that variable costs vary in proportion to activity O D. It assumes that costs can be classified as variable or fixed