already passed 2025/2026
In a special sales order decision, incremental fixed costs that will be incurred if the special order is
accepted are considered to be - correct answer ✔relevant to the decision
Which of the following would be a consideration for ''sell as is or process furhter'' decisions? - correct
answer ✔Costs involved in further processing, revenue generated if ''further processed'', revenue
generated if sold as if
Companies with production constraints and irrelevant fixed costs will be most profitable when they
maximize production of the product with the highest - correct answer ✔contribution margin per unit of
the constraint
A sunk cost is described as which of the following? - correct answer ✔A historical cost that is always
irrelevant
A relevant cost is best described by which of the following? - correct answer ✔Expected future costs
that differ among alternatives
in deciding whether to outsource, managers must consider - correct answer ✔relevant fixed and
variable components
A companys manager would consider which of the following in deciding whether to discontinue its
electronics product line? - correct answer ✔How discontinuing the electronics product line would
affect sales of its other products, the revenues it would lose from discontinuing the product line, the
costs it could save by discontinuing the product line
Which of the following pairs are characteristics of price-setters? - correct answer ✔Cost-plus pricing
and less competition