Managerial Accounting questions

MULTIPLE CHOICE Which of the following is a cost that does not differ between decisions? Controllable costs B. Opportunity costs Unavoidable costs Incremental costs Which of the following is a cost that was incurred in the past that will never be incremental? Sunk costs B. Opportunity costs Avoidable costs Relevant costs A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which of the following is not relevant to the decision? A. The selling price of the completed units The costs incurred to process the units to this point The selling price of the partially completed units The costs that will be incurred to finish the units A company is trying to decide whether to keep or drop the organic foods department in its grocery store. Iforganic foods are dropped, the manager will be laid off. What is the manager's salary in relation to the decision to keep or drop the department? A. An opportunity cost and therefore relevant Avoidable and therefore incremental Sunk and therefore not relevant The same for all alternatives and therefore not relevant Wilson is currently producing a component for one of its products. Wilson has received an offer to buy the component from an outside supplier. A machine is currently being rented to manufacture the component. If the company buys the component, the rental will be cancelled What is the rent on the machine, in relation to the decision to make or buy the component? Sunk and therefore not relevant Avoidable and therefore not relevant Avoidable and therefore relevant Unavoidable and therefore relevant be eliminated if a particular course of action is undertaken are called sunk costs. B. opportunity costs accounting costs. avoidable costs