How can you best explain differential costs? Select an answer: They are the difference in costs between out-of-pocket costs and opportunity costs. They are the difference in costs between making a decision from several alternatives and not making any decision. They are the difference in costs between several decisions that cannot be changed as the result of a future decision They are the difference in costs between several alternatives that can change as the result of a future decision For a comparison of cash flows to be accurate, at what value in time would the cash flows be stated? Select an answer: the previous year the second year the terminal year the present Skip Previous When is it most likely necessary to have corrective action taken on a variance that is a favorable variance? Select an answer: when the variance is a favorable labor rate variance when the variance is a favorable price variance when the variance is a favorable labor efficiency variance when the variance is a favorable materials quantity variance Why is it important that you have a firm grasp on how costs are accounted for in service industries? Select an answer: Service industries are relics that still exist from a former and failed sector of the US economy Service industries do not have overhead and labor costs when selling their services. Service industries are the fastest growing sector of the US economy Service industries have nothing in common with manufacturing companies Skip Previous What is the second step in establishing a standard cost system? Select an answer: developing standard costs collecting actual costs comparing actual costs with expected costs identifying why a variance exists Skip Previous How does having a good cash budget help a company that anticipates a short-term cash deficiency a few months into the future? Select an answer: It will be easier for the company to get a bank loan in advance of when the cash is needed. The company can use the lag time to increase its owner's equity. It will be easier for the company to get a bank loan if it waits until the cash is needed The company can use the lag time to turn its receivables into cash Skip Previous