A decision whether to make a product for one specific customer or a one-time order with unique specifications is a:

Select one:

a.product-line decision

b.make-or-buy decision

c.customer-retention decision

d.special order decision

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The cost of straight-line depreciation on a factory building is:

Select one:

a.Variable

b.Fixed

c.Mixed

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The cost of hourly wages for assembly workers is:

Select one:

a.Variable

b.Fixed

c.Mixed

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Use the following table to calculate the present value of $2,000 will be received at the end of each year for 6 years. The rate is 12 percent.

Present value of a single payment

Present value of an annuity

Year

11%

12%

13%

Year

11%

12%

13%

3

0.731

0.712

0.693

3

2.4437

2.4018

2.3612

4

0.659

0.636

0.613

4

3.1024

3.0373

2.9745

5

0.593

0.567

0.543

5

3.6959

3.6048

3.5172

6

0.535

0.507

0.480

6

4.2305

4.1114

3.9975

7

0.482

0.452

0.425

7

4.7122

4.5638

4.4226

Select one:

a.12,000

b.8,223

c.8,800

d.2,400

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Differential analysis is best described as:

Select one:

a.The benefits forgone when one alternative is selected over another.

b.Analyzing the difference in revenues and costs from one alternative course of action to another.

c.Revenues and costs that differ from one alternative to another.

d.Costs incurred in the past that cannot be changed by future decisions.

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The cost of invoices sent to customers is:

Select one:

a.Variable

b.Fixed

c.Mixed