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12 Advances in a. decreasing direct labor costs and decreasing overhead costs b. decreasing direct labor costs and increasing overhead direct labor costs and increasing overhead costs costs d. increasing direct labor costs and decreasing overhead costs 13. Incremental analysis would not be appropriate for a. analysis of b. a decision c. a make or buy decision. d. an allocation of limited resources decision. elimination of an unprofieable segment 14. If management anticipates that sales revenue expected in the ordinary course of business will be affected by the acceptance of a special order, then a the amount of sales expected to be lost should be considered in the incremental analysis b. the amount of sales expected to be lost should ngt be considered in the incremental c. the order should not be accepted d. the order should only be accepted if the plant is below capacity 15. Which decision does not involve incremental revenue? a. Sell as is or process further decision. b. Whether to accept a special order c. Make or buy decision d. Retain or drop a product line a as a system to allocate manufacturing overhead costs to products. b. in conjunction with c. to determine the anticipated gross profit for a new product line. d. to develop relevant information for management decisions 16. Incremental analysis is most useful cost behavior to project costs at different levels of activity. 17. If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then a. the order will likely be accepted b only variable costs are relevant. C. the order will likely be rejected. d. fixed costs are not relevant. Page 15