ACC 212 Final Exam questions with correct answers 2026/2027 Edition Graded A+ 1) An opportunity cost: Is the potential benefit lost by taking a specific action instead of alternative actions. 2) Tanner Company currently pays $14 per unit to buy a pa

ACC 1O1/102/202
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS

, ACC 212 Final Exam questions
with correct answers
2026/2027 Edition Graded A+
1) An opportunity cost:
Is the potential benefit lost by taking a specific action instead of
alternative actions.
2) Tanner Company currently pays $14 per unit to buy a part for a
product it manufactures. Instead, Tanner could make the part for per
unit costs of $6 for direct materials, $4 for direct labor, and $2 for
incremental overhead. Tanner normally applies overhead costs using a
predetermined rate of 200% of direct labor cost. Should Tanner make
or buy the part?
Make the part as the cost to make it is $2 less than the cost to buy it.
3) An additional cost from selecting a certain course of action is a(n):
Incremental cost.
4) Gordon Corporation produced 10,000 digital watches in the current
year. Variable costs are $8 per watch. Overhead assigned is $2.25 per
watch. A supplier offers the watches for $9.50 each. Gordon's
production manager reports the incremental overhead is $1.25 per
watch. Gordon should:
Continue making the watches as an additional $0.25 per watch would
be incurred if bought from the supplier.