Match the following statements to the appropriate terms. A cost that cannot be changed by any present or future decision. The process of identifying the financial data that change under alternative courses of action The potential benefit that may be lost from following an alternative course of action. Match the following statements to the appropriate terms A cost that cannot be changed by any present or future decision. The process of identifying the financial data that change under alternative courses of action The potential benefit that may be lost from following an alternative course of action Sunk cost Opportunity cost Incremental analysis Question 6 Sheffield Corp. is considering the following alternatives: Revenues Variable costs Fixed costs Alternative A $70000 42000 10000 Alternative B $80000 42000 16000 What is the incremental profit? $6000 $0 $18000 $4000 Question 7 Miley, Inc. has excess capacity. Under what situations should the company accept a special order for less than the current selling price? When additional fixed costs must be incurred to accommodate the order. When the company thinks it can use the cheaper materials without the customer's knowledge. Never When incremental revenues exceed incremental costs. An opportunity cost should be initially recorded as an asset. is classified as manufacturing overhead. is the cost of a new product proposal is the potential benefit that may be lost by following an alternative course of action. The decision rule on whether to sell or process further is process further if incremental revenue from such processing exceeds the incremental processing costs is process further as long as total revenue exceeds present revenues is process further if incremental revenue from such processing exceeds incremental fixed costs. varies from situation to situation. A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost? The book value of the old equipment. Depreciation expense of the old equipment. The current disposal price of the old equipment. The loss on disposal of the old equipment