13. The advantages of standard costing include all of A. Facilitating management planning B. Useful in setting selling prices. in management C. Useful in highlighting variances D. Increasing clerical costs due to more complex costing the following exsept n management by exception. Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. egmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total $765,000 242,000 $(15.000) $110.000 Sales $500,000 $200,000 S 65,000 Variable expenses325000 140.000 Contribution margin 75,000 Fixed expenses Net income (loss) S100.000 $25.000 7,000 60,000 75.000 35.000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the Ha Rubber line is dropped? A. $103,000 B. $105,000 C. $125,000 D. $140,000 15. Nonfinancial information that management might evaluate in making a decision would not include A. employee turnover B. contribution margin. C. the environment. D. the corporate profile in the community. 16. In an equipment replacement decision, the cost of the old equipment is a(n) A. incremental cost. B. sunk cost. C. relevant cost. D. opportunity cost 17. The payback method is criticized on the grounds that it A. B. C. D. ignores obsolescence factors. ignores the cost of an investment. is complicated to use. ignores the time value of money 18. The capital budgeting technique that finds the interest yield of the potential investment is the a. annual rate of return method. b. internal rate of return method. c. net present value method d. profitability index method