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PLEASE ANSWER THE FOLLOWING -

Which of the following statements about incremental analysis is true?

It cannot be used if more than two alternatives are available.

It considers only cost factors, not revenue.

Its focus is on the past activities.

It only considers factors that are different for each alternative, and only those factors that will occur in the future.

2.The Colin Division of Mochrie Company sells its product for $30 per unit. Variable costs per unit are: manufacturing, $12; and selling and administrative, $2. Fixed costs are: $200,000 manufacturing overhead, and $50,000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40,000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40,000 units or 50,000 units. What would the net income be under variable costing for each alternative? 40,000 units 50,000 units

$390,000 $390,000

$390,000 $430,000

$390,000 $440,000

$430,000 $390,000

3

____________________ treats all costs as period expenses except for direct materials.

Variable costing

Absorption costing

Throughput costing

Product costing

4.

Blue Haven Computers sales volume is below its production volume for the month. How will profit margin differ on an absorption costing income statement from profit margin on a variable costing income statement?

Profit margin will be higher on a variable costing income statement.

Profit will be higher on an absorption costing income statement.

Both amounts will be the same. The costs are just located in different sections of the two statements.

It depends on the number of cost pools the company uses to allocate capacity costs.