Question
1. Accepting a special order is profitable whenever the revenue from the special order exceeds: Multiple Choice The average unit cost of production multiplied by
1. Accepting a special order is profitable whenever the revenue from the special order exceeds:
Multiple Choice
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The average unit cost of production multiplied by the number of units in the order.
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The incremental cost of producing the order.
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The materials and direct labor costs of producing the order.
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The fixed manufacturing costs for the period.
2.
Which of the following types of cost are always relevant to a decision?
Multiple Choice
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Sunk costs
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Average costs
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Incremental costs
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Fixed costs
3.
A cost that has already been incurred and cannot be changed is called a(n):
Multiple Choice
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Opportunity cost.
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Out-of-pocket cost.
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Joint cost.
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Sunk cost.
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