Answer

A cost that change in total proportionately with a change in the cost driver is average cost. controllable cost. variable cost. differential cost. marginal cost. A cost that differs between the decision options and will be incurred in the future is a variable cost. relevant cost. marginal cost. controllable cost. discretionary cost. The benefit lost when one option is chosen that precludes the benefits from an alternative option is a (n) sunk cost. discretionary cost. discrete cost. differential cost. opportunity cost. The most objective basis for allocating costs occurs: When the costs can be directly traced to a cost object. When a cause and effect relationship can be determined. More frequently in manufacturing than in service firms. When allocation is based on the size of the department using the service When the data is totally objective Which is the correct sequence in planning Set goals, prepare budget, develop strategy. Prepare budget, set goals, develop strategy. Set goals, develop strategy, prepare budget. Develop strategy, set goals, prepare budget. All three activities (goals, budget) happen simultaneously