23. Differential costs are: A. A cost that continues to be incurred in the absence of activity. B. The profit foregone by selecting one choice instead of another. C. The difference in total costs that result from selecting one choice instead of another. D. None of the above. 24. Differential analysis involves comparing alternative actions with the status quo to make decisions. A. True. B. False. 25. The period of time over which capacity will be unchanged is: A. Long run. B. Sunk cost C. Short run. D. Product life cycle 26. If there is excess capacity, the minimum acceptable price for a special order must cover: A. Only variable costs associated with the special order. B. Variable and incremental fixed costs associated with the special order. C. Variable and fixed manufacturing costs associated with the special order. D. Variable costs and incremental fixed costs associated with the special order, plus the contribution margin usually eaned on regular units. 27. Costs that were incurred in the past and cannot be changed regardless of the decision made are call sunk costs. A. True. B. False. 28. The practice of selling price below cost with the intent to drive competitors out of business. A. Target cost. B. Target price. C. Predatory price D. Peak-load pricing. 29. A target cost is computed as: A. Cost to manufacture plus a desired markup. B. Cost to manufacture plus designated selling expenses C. Market willingness to pay less cost to manufacture. D. Market willingness to pay less desired profit. 30. The theory of constraints focuses on determining the optimal product mix when one or more resources restrict the attainment of a goal or objective. A. True B. False