Question
1} Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with
1}
Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received.
True or False
2)
The extent, or relative size, of fixed costs in the total cost structure is known as operating leverage.
True or False
3)
The margin of safety is the amount that sales can drop before the company incurs a loss.
True or False
4)
Cost-volume-profit analysis is used to predict future costs to be incurred, volumes of activity, sales to be made, and profit to be earned.
True or False
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