27. Which of the following is never considered in incremental analysis?

A. Incremental revenue

B. Sunk costs

C. Incremental profit

D. Differential costs

28. The value of benefits foregone by selecting one decision alternative over another is a(n)

A. unavoidable cost.

B. incremental benefit.

C. differential revenue.

D. opportunity cost.

29. When a department or product line is dropped, the common fixed costs that had been allocated to that department

A. are eliminated.

B. become variable costs.

C. are allocated to the remaining departments or product lines.

D. become sunk costs.

30. The theory of constraints seeks to

A. improve throughput in all departments.

B. improve throughput in the department with the binding constraint.

C. create more constraints.

D. sell at the split-off point.

31. The target costing process begins with the design of the product.

32. Which of the following stays constant when the price per unit changes?

A. Demand

B. Contribution margin per unit

C. Total fixed costs

D. Profit