1. differential costs are (cma adapted) (points : 1) 

the difference in total costs that result from selecting one choice instead of another.

the profit foregone by selecting one choice instead of another. 

a cost that continues to be incurred in the absence of activity. 

a cost common to all choices in questions and not clearly allocable to any of them. 

question 2.2. the blue company is currently selling its single product for $15. variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. if blue increases its selling price by 10%, its variable cost ratio will (points : 1) 

not change 

decrease 

increase 

question 3.3. at a break-even point of 400 units, variable costs were $400 and fixed costs were $200. what will the 401st unit sold contribute to operating profits before income taxes? (points : 1) $ .50 $1.00 $1.50 $2.00 some other answer _______________.

question 4.4. the relevance of a particular cost to a decision is determined by the: (cma adapted, 12/96) (points : 1) riskiness of the decision. number of decision variables. amount of the cost. potential effect on the decision. accuracy of the cost. 

question 5.5. the field of accounting that depends on generally accepted accounting principles (gaap) is called (points : 1) cost accounting. financial accounting. managerial accounting. responsibility accounting. international accounting. 

question 6.6. a manufacturing company incurs direct labor costs as it transforms direct material into marketable products. the cost of the direct labor will be treated as a period cost on the income statement when the resulting: (points : 1) payroll costs are paid. payroll costs are incurred. products are completed. products are sold. 

question 7.7. the terms direct cost and indirect cost are commonly used in accounting. a particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. classifying a cost as either direct or indirect depends upon (points : 1) whether an expenditure is unavoidable because it cannot be changed regardless of any action taken. whether the cost is expensed in the period in which it is incurred. the behavior of the cost in response to volume changes. the cost object to which the cost is being related. 

question 8.8. a company that manufactures custom-made machinery routinely incurs sizable telephone costs in the process of taking sales orders from customers. which of the following is a proper classification of this cost? (points : 1) product cost period cost conversion cost prime cost 

question 9.9. you have been asked to help a student health center determine which costs will vary with the number of students who come to the health center. the health center employs one doctor, three nurses, and several other employees. how would you classify (1) the nurse's salary and (2) film and other materials used in radiology to give x-rays to students? the nurse’s salary would be considered a ______, while the film and other materials would be considered a ______. (points : 1) fixed cost; fixed cost fixed cost; variable cost variable cost; fixed cost variable cost; variable cost mixed cost; mixed cost 

question 10.10. expense a is a fixed cost expense, b is a variable cost. during the current year the volume of output has decreased. in terms of cost per unit of output, we would expect that (points : 1) expense a has remained unchanged. expense b has decreased. expense a has decreased. expense b has remained unchanged.  

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1 Answer The difference in total cost that result from selecting one choice instead of another Explanation differential cost is an amount by which fut... View the full answer