Which of the following would be relevant in the decision to sellor throw out obsolete inventory?

	Direct material cost assigned to the inventory	Fixed overhead cost assigned to the inventory
A)	Yes	Yes
B)	Yes	No
C)	No	Yes
D)	No	No

Multiple Choice

• Choice C

• Choice A

• Choice D

• Choice B

In a sell or process further decision, consider the followingcosts:

1. A variable production cost incurred prior to split-off.

2. A variable production cost incurred after split-off.

3. An avoidable fixed production cost incurred after split-off.

Which of the above costs is (are) not relevant in a decisionregarding whether the product should be processed further?

Multiple Choice

• Only III

• Only I

• Only I and III

• Only I and II

Answer rating: 100% (QA)

Solution 1 Direct material cost and fixed overhead cost assigned to inventory both are ... View the full answer