Accounting 231 Exam 4 Holbrook
WSU Question and answers 100%
correct 2025/2026
differential cost - correct answer ✔A future cost that differs between any two alternatives
differential revenue - correct answer ✔future revenue that differs between any two alternatives
incremental cost - correct answer ✔an increase in cost between two alternatives
avoidable cost - correct answer ✔a cost that can be eliminated by choosing one alternative over
another
opportunity cost - correct answer ✔benefit that is foregone as a result of pursuing some course of
action
Special Order - correct answer ✔one-time order that is not considered part of the company's normal
ongoing business
Only the incremental costs and benefits are relevant
vertical integration - correct answer ✔When a company is involved in more than one activity in the
entire value chain
volume trade-off decisions - correct answer ✔when they do not have enough capacity to produce all of
the products and sales volumes demanded by their customers
Constraint - correct answer ✔When a limited resource of some type restricts the company's ability to
satisfy demand
WSU Question and answers 100%
correct 2025/2026
differential cost - correct answer ✔A future cost that differs between any two alternatives
differential revenue - correct answer ✔future revenue that differs between any two alternatives
incremental cost - correct answer ✔an increase in cost between two alternatives
avoidable cost - correct answer ✔a cost that can be eliminated by choosing one alternative over
another
opportunity cost - correct answer ✔benefit that is foregone as a result of pursuing some course of
action
Special Order - correct answer ✔one-time order that is not considered part of the company's normal
ongoing business
Only the incremental costs and benefits are relevant
vertical integration - correct answer ✔When a company is involved in more than one activity in the
entire value chain
volume trade-off decisions - correct answer ✔when they do not have enough capacity to produce all of
the products and sales volumes demanded by their customers
Constraint - correct answer ✔When a limited resource of some type restricts the company's ability to
satisfy demand
