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Incorrect Question 1 0/3 pts What are differential revenues and costs? Differential revenues are revenues that differ when one alternative is selected over another. Differential
Incorrect Question 1 0/3 pts What are differential revenues and costs? Differential revenues are revenues that differ when one alternative is selected over another. Differential costs are costs that differ when one alternative is selected over another Differential revenues are costs that differ when one alternative is selected over another. Differential costs are costs that differ when one alternative is selected over another Differential revenues are revenues that differ when one alterative is selected over another. Differential costs are revenues that differ when one alternative is selected over another Differential revenues are profits that differ when one alternative is selected over another. Differential costs are revenues that differ when one alternative is selected over another Incorrect Question 2 0/3 pts What is differential analysis? Differential analysis is reviewing the differential revenues for alternative courses of action Differential analysis is reviewing the differential costs for alternative courses of action Differential analysis is reviewing the differential investments for alternative courses of action Differential analysis is reviewing the differential revenues and costs for alternative courses of action Incorrect Question 4 0/3 pts Why are direct fixed costs typically differential costs? Direct fixed costs can be traced directly to a product line and can be eliminated Direct fixed costs can be traced Indirectly to a product line and are typically avoidable if the product line is eliminated. Direct variable costs can be traced directly to a product line, and are typically avoidable if the product line is eliminated, Direct fixed costs can be traced directly to a product line and are typically avoidable if the product line is eliminated. Incorrect Question 5 0/3 pts Why are allocated fixed costs typically not differential costs? Allocated fixed costs can be traced directly to a product line and are assigned to product lines using an allocation process. Allocated fixed costs cannot be traced directly to a product line and are assigned to product lines using an allocation process. Allocated variable costs cannot be traced directly to a product line. Allocated fixed costs cannot be traced directly to a product line and are never assigned. 0/4 pts Incorrect Question 7 Power on Wheels produces two types of go-karts: Vortex and Zoom. The go-karts are produced in separate departments and sent to the quality testing department before being packaged and shipped. A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job. Power on Wheels would like to optimize its use of labor hours by producing the most profitable go-kart. Based on the information shown, calculate the contribution margin per quality testing labor hour for each product: Quality testing labor hrs Contribution margin Vortex .50 $1,600 Zoom .40 1,500 Vortex 2000 and Zoom 3750 Vortex 3200 and Zoom 9750 Vortex 100 and Zoom 100 Vortex 3200 and Zoom 3750
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