13. In the calculation of net income in absorption costing versus variable costing,

a. The difference is due solely to the treatment of fixed manufacturing overhead

b. The difference can be calculated as the change in fixed manufacturing overhead allocated to inventory

c. Variable selling costs are completely expensed in both methods

d. All of the above

e. None of the above

14. An avoidable cost

a. Is a cost that has already been incurred

b. Is a cost that can be eliminated by choosing one alternative over another

c. Is a benefit that will be sacrificed by choosing one alternative over another

d. Is a future cost that does not differ between alternatives

e. None of the above

15. One of the reasons we identify relevant costs is that

a. Mingling relevant and irrelevant costs may distract attention from critical information

b. The ratio of relevant to irrelevant costs is a measure of the quality of information

c. Some irrelevant costs may vary depending on the decision to be made

d. All of the above

e. None of the above