Support services used by each manufacturing division are multiplied by the service department allocation rates to determine the service department allocations for each division.

True

False

The DuPont Formula expresses Return on Assets in terms of Profit Margin and

		Variable expenses
		Receivables Turnover
		Operating Income before Depreciation
		Asset Turnover

1. ____________________ analyzes the revenues and costs of business options in order to determine the impact on profit of two alternative courses of action.

   		GAAP
   		Marginal cost analysis
   		Differential analysis
   		Marginal analytics

Costs that have been incurred in the past, cannot be recouped, and are not relevant to future decisions are called

		sunk costs
		Ex parte costs
		distressed costs
		irrelevant costs

When a manufacturer is trying to remain competitive, the company will often set a required selling price and a required profit. This will dictate the costs (savings) required.

True

False

In the Total Cost Method for setting Price, the Markup includes

		Desired profit + total fixed costs
		Desired profit + selling expense + administrative expense
		Desired profit only
		Desired profit + administrative expense

Using the Total Cost Method for setting a Selling Price, the Selling Price will equal the Total cost per unit + the Markup per Unit.

True

False

When discontinuing a business segment, all of the segments costs will immediately be eliminated.

True

False