Question 1

Using incremental analysis, total variable costs will always change under different courses of action and total fixed costs will always remain the same under different courses of action.

Group of answer choices

True

False

Question 2

A company with excess capacity will always achieve profitability by accepting a special order at a special unit price even thought the price is less than the unit variable cost to manufacture it.

Group of answer choices

True

False

Question 3

Which of these will always be a relevant cost?

Group of answer choices

Sunk cost.

Fixed and variable costs.

Opportunity cost.

Variable cost.

Fixed cost.

Fixed, variable, and opportunity costs.

question 6

Which of the following is not a disadvantage of buying rather than making a component of a company's product in-house?

Group of answer choices

Quality control may not be maintained.

Profitable product lines may be dropped by mistake.

Outside suppliers can increase the price in the future.

The supplier may not deliver on time.

Question 7

Which of the following would not be a qualitative consideration in a make or buy decision?

Group of answer choices

Reputation of the company.

None of the other options - they are all qualitative considerations.

Loss of jobs in the local community.

A supplier's ability to meet quality control requirements.

Supplier's ability to meet the production schedule.