ANSWER THIS TRUE OR FALSE

11. In make or buy decision, only variable costs are relevant. 12. In considering a special order that will enable a company to make use of presently idle capacity, depreciation costs would be irrelevant. 13. Fixed costs are fixed in total but variable per unit, variable costs are variable in total but fixed per unit. 14. Opportunity cost is cost of a benefit expected in preference for another alternative. 15. Expected future costs that will differ among alternatives is called out-of-pocket costs. 16. Controllable costs are defined as those that are directly influenced by a given manager within a given time span. 17. A growing organization should decentralize no matter what the costs may be.13. A responsibility accounting system is designed primarily for costs control and performance evaluation. 19. All controllable costs are direct costs. 2t]. To evaluate the performance of an investment center, the prot earned is related to the investment in the center. 21. United Industries manufactures a number of products at its highly automated factory. The products are very popular. With demand far exceeding the factory's capacity. To maximize prot, management should rank products based on their. a. gross margin b. contribution margin c. selling price d. contribution margin per unit of the constrained resource 22. In a sell or process further decision+ consider the following costs: |. A variable production cost incurred prior to split-off. II. A variable production cost incurred after split-off. lll. An avoidable xed production cost incurred alter split-off. Which of the above costs is {are} not relevant in a decision regarding whether the product should be processed further? a. Unify.r l h. Only "I c. Dnlyland ll d. Dnlyland lll