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need help with 5-8 please True 1) Incremental costs are the additional costs incurred if a company pursues a certain course of action. False 2)
need help with 5-8 please
True 1) Incremental costs are the additional costs incurred if a company pursues a certain course of action. False 2) A sunk cost will change with a future course of action. False 3) Another name for relevant cost is unavoidable cost. True 4) Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of the added production with the additional revenues to be received. Select 5) In a make or buy decision, management should focus on costs that are different under the two alternatives. Select) 6) Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs. Select 7) If a company has the capacity to produce either 10,000 units of Product A or 10,000 units of Product B; assuming fixed costs are the same, production restrictions are the same for both products, and the markets for both products are unlimited; the company should commit 100% of its capacity to the product that has the higher contribution margin per unit of operating capacity Select) 8) A special order of goods or services should always be accepted when the incremental revenue exceeds the normal revenue Step by Step Solution
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