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The following information is available for the Gabriel Products Company for the month of July: The profit variance due to the sales volume difference for

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The following information is available for the Gabriel Products Company for the month of July: The profit variance due to the sales volume difference for the month of July would be a. $200 favorable. b. $6, 000 favorable. c. $4, 000 favorable. d. cannot be calculated with the available information. In selecting a cost-allocation base for variable overhead, what criteria for the base is most preferred? a. Ease of acquiring information for allocations b. A cause-and-effect relationship between the overhead and cost allocation base c. A single base that will simplify the allocation process d. One that has been used in the past Which of the following typically should probably be considered for every option in the decision process? a. Sunk costs b. Relevant costs c. Historical costs d. Cost of goods sold RCG Services is investigating its profitability relationship with each of its customers. What is the best question RCG should ask in deciding whether to keep or drop a particular customer? a. Will the customer be upset with us? b. Will our sales volume decrease? c. Will we have to fire the related salesperson? d. Will expected total operating income increase if decision is made to drop the customer

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