1) True or False: Variable costs are relevant in deciding whether or not to drop a product. 

2) True or False: Discretionary fixed costs are subject to management control from year to year. 

3) True or False: An "opportunity cost" does not exist in a situation where both choices are undesirable. 

4) True or False: If a company is going to make a special bid, the minimum bid should be for the amount of total variable costs. 

5) True or False: If a company operating at less than full capacity receives a special order request with a price less than total cost, the company should reject the request. 

6) True or False: When using differential analysis to decide whether to eliminate certain products, segments, or customers, costs must be reclassified into those that would be eliminated or changed by the elimination and those that would not. 

7) True or False: A company normally will not add a product with a negative contribution margin. 

8) True or False: Joint products should be processed after the split-off point only if the difference in expected selling price at the split-off point and after further processing exceeds the per unit cost of processing

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Accounting Questions Answers 1 True Variable costs are relevant because they change with the production or sales volume of the product If you drop the ... View the full answer