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a. Future costs b. Future costs that differ between competing decision alternatives c. Opportunity costs d. Sunk costs e. Costs that remain the same across
a. Future costs b. Future costs that differ between competing decision alternatives c. Opportunity costs d. Sunk costs e. Costs that remain the same across decision altematives but differ between decisions. 2. The external acquisition of services or components is considered in: a. Avoidable costs of production. b. Special orders decision. c. Make or buy decision. d. Value chain analysis. e. Equipment replacement. 3. The Chitterchat Co. manufactures and sells 25,000 telephones per year. The full manufacturing costs per telephone are as follows: The Gonguin Co. has offered to sell Chitterchat 25,000 telephones for $34 per unit. If Chitterchat accepts the offer, $180,000 of fixed overhead will be eliminated. Chitterchat should: a. Make the telephones; the savings is $70,000. b. Buy the telephones; the savings is $500,000. c. Buy the telephones; the savings is $320,000. d. Make the telephones; the savings is $250,000. e. Make the telephones; the savings is $180,000 4. Which of the following is not a record required for operating a job cost system? A) Production orders B) Job cost sheets C) Sales call sheets D) Materials requisition forms E) Direct labor time record
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