28)

Which of the following statements is true?

a.All variable costs are relevant costs.

b.All fixed costs are relevant costs as they impact on overall unit costs.

c.Fixed costs are never relevant costs.

d.Only those variable costs that differ between alternatives are relevant costs.

29)

Question 29

Which steps do accountants mostly contribute to in the decision-making process?

a.Making a decision and then reviewing the results of that decision.

b.Determining and evaluating possible courses of action, and then making a decision.

c.Identifying the problem and then assigning responsibility.

d.Determining and evaluating possible courses of action and then reviewing the results of the decision.

30)

Among several types of decisions that involve incremental analysis, the most common are

a.accept an order at a special price.

b.make or buy component parts.

c.sell products or process further.

d.all of the above.

33)

The most important thing to consider when deciding to replace or keep equipment is

a.the estimated number of years remaining on the books.

b.the expected variable costs of the new equipment.

c.whether book value is higher than replacement value.

d.salvage value of the current equipment.