1. In deciding which product lines to emphasize when a production constraintexists, Kitchenware.com should focus on the product line that has the highest

A.

contribution margin per unit of the constraining factor.

B.

contribution margin ratio.

C.

contribution margin per unit of product.

D.

profit per unit of product.

2. When making outsourcingdecisions, which of the following istrue?

A.

The variable cost of producing the productin-house is relevant.

B.

Avoidable fixed costs are irrelevant.

C.

The total manufacturing unit cost of making the productin-house is relevant.

D.

Expected use of the freed capacity is irrelevant

3. When makingdecisions, managers should consider

A.

sunk costs in their decisions.

B.

revenues that differ between alternatives.

C.

only variable costs.

D.

costs that do not differ between alternatives.

4.In deciding whether to drop its electronics productline, Smith Company should consider

A.

the costs it could save by dropping the product line.

B.

how dropping the electronics product line would affect sales of its other products like DVDs.

C.

the revenues it would lose from dropping the product line.

D.

All of the above.