Please answer multiple choice questions and provide explanations

File Tools View Document1 - Word - 1) Which of the following describes a relevant cost? C $54,000 A A past cost that is the same among alternatives. D $92,000 B. A past cost that differs among alternatives. 6) Outsourcing is associated with which of the following decisions? C. A future cost that is the same among alternatives. A Special-order decisions. D. A future cost that differs among alternatives. B Make or buy decisions. 2) Sunk costs are ignored in decision-making. C Equipment replacement decisions. True or False D Decisions that involve limited resources 3) The benefit of one alternative that is lost by choosing another is called: 7) A bottleneck is an operation where the work to be performed exceeds available capacity A an opportunity cost. True or False B a sunk cost. 8) The process of reviewing, assessing, and adjusting manufacturing resources to ensure that they provide sufficient capacity is known as. Can incremental cost. A capacity management. D an alternative cost. 8 management by exception. 4) The Seiner Company is planning to replace an old machine with a new one. Which of the following is a sunk cost? C resource management. A The cost of the new machine. D capacity assessment. B The sales price of the old machine. 9) Fixed costs are not considered when deciding to add or drop a product line C The future maintenance costs of the old machine. True or False . D The original cost of the old machine 10) A make or buy decision is one that contemplates accepting an order at a lower price than usual 5) Lisa is contemplating a job offer with an advertising agency where she will make $54,000 a year. Lisa is also con- sidering working in her father's business where she will earn $38,000 a year. If Lisa decides to work with her father, True or False her opportunity cost would be: A $16,000 8 538.000