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QUESTION 1 10 points Save Answer Opportunity costs are: O not used for decision making O the same as variable costs O the same as historical costs. O relevant in decision-making. QUESTION 2 10 points Save Answer When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on: O selling price per unit. O contribution margin per unit. O contribution margin per unit of the constraining resource. O unit sales volume. QUESTION 3 10 points Save Answer In making a decision, relevant costs include: unavoidable fixed costs. O avoidable fixed costs. O fixed factory overhead costs applied to products. O fixed selling and administrative expenses. QUESTION 4 10 points Save Answer Which of the following is NOT an effective way of dealing with a production constraint (i.e., bottleneck)? O Reduce the number of defective units produced at the bottleneck O Pay overtime to workers assigned to the bottleneck. O Pay overtime to workers assigned to work stations located after the bottleneck in the production process. O Subcontract work that would otherwise require use of the bottleneck.QUESTION 5 10 points Save Answer The break-even in units sold will decrease if there is an increase in: O unit sales volume. total fixed expenses. O unit variable expenses. selling price. QUESTION 6 10 points Save Answer Contribution Contribution Margin Break Even in Margin Per Unit Ratio Units A) Increases ncreases Decreases B No Change No Change No Change C) No Change Increases No Change D Increases No Change Decreases Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: O option A. O option B. O option C. O option D. QUESTION 7 10 points Save Answer If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative to its previous position will: O shift downward and have a steeper slope. O shift downward and have a flatter slope. shift upward and have a flatter slope. O shift upward and have a steeper slope.QUESTION 8 10 points Save Answer Hal currently works as the burger guy at Burger Haven but is thinking of quitting his job to attend college full time next semester. Which of the following would be considered an opportunity cost of attending college? O The costs of the textbooks. The costs of the cola that Hal will consume during class. Hal's lost wages at Burger Haven. The cost of commuting to the Burger Haven job. QUESTION 9 10 points Save Answer If Q equals the units sold, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the degree of operating leverage is equal to O Q/(P-V). OF/(P-V). O F/[(P-VY/P]. O [(P-V)Q][(P-V)Q-F]. QUESTION 10 10 points Save Answer Assume a company sells a single product. If Q equals the units sold, P is the selling price per unit, V is the variable expense per unit, and F is the fixed expense, then the break-even point in sales dollars is: F/(P-V). O F/[Q(P-V)]. O F/[Q(P-VVP] O F/[(P-VYP]