2) A(n) ________ starts with the assumption that current activities in a company will not automatically continue in the next period.

A) activity-based budget

B) strategic budget

C) master budget

D) zero-base budget

3) Which of the following item is irrelevant to the decision whether to process joint products beyond the split-off point?

A) separable costs

B) additional costs from further processing beyond the split-off point

C) additional revenue from further processing beyond the split-off point

D) joint costs

4) On a cost-volume-profit graph, at the point where the Total Revenue line intersects the Total Cost line, ________.

A) net income is positive

B) net income is negative

C) net income is zero

D) not enough information is given

5) Which of the following items is usually NOT important to special order decisions?

A) affect of special order on regular business

B) whether idle capacity is available

C) total fixed costs

D) increase in variable costs per unit due to special order