1) How can you best explain differential costs? Select an answer: They are the difference in costs between out-of-pocket costs and opportunity costs. They are the difference in costs between making a decision from several alternatives and not making any decision. They are the difference in costs between several decisions that cannot be changed as the result of a future decision They are the difference in costs between several alternatives that can change as the result of a future decision

2)

For a comparison of cash flows to be accurate, at what value in time would the cash flows be stated?

Select an answer:

• the previous year

• the second year

• the terminal year

• the present

• 3)

  hen is it most likely necessary to have corrective action taken on a variance that is a favorable variance?

  Select an answer:

• when the variance is a favorable labor rate variance

• when the variance is a favorable price variance

• when the variance is a favorable labor efficiency variance

• when the variance is a favorable materials quantity variance

• 4)

  Why is it important that you have a firm grasp on how costs are accounted for in service industries?

  Select an answer:

• Service industries are relics that still exist from a former and failed sector of the US economy.

• Service industries do not have overhead and labor costs when selling their services.

• Service industries are the fastest growing sector of the US economy.

• Service industries have nothing in common with manufacturing companies.

• 5)

  TempWorld provides accounting professionals as temporary workers to companies. Which cost is a period cost? BAD QUESTION - ALL ANSWERS ARE CORRECT

  Select an answer:

• the cost of newspaper advertising

• the rent paid on the local TempWorld office

• the TempWorld office manager's salary

• the money paid to temporary workers by TempWorld