What is opportunity cost? Select one: a. An opportunity cost is the difference between two costs. b. An opportunity cost is another term for irrelevant cost. c. An opportunity cost is the value of the next best alternative foregone. d. An opportunity cost is the total value of all the alternatives foregone. A special order is a: Select one: a. one-time purchase order received by a company, which is not considered part of the company's normal operations b. an order that decreases a company's operating income if fulfilled assuming that company is not operating at capacity c. an order that increases a company's operating income if fulfilled assuming that company is operating at capacity d. an order that if fulfilled does not affect the company's operating income Divulging confidential company information to a close relative is unethical. Select one: True False A manufacturing company is faced with a make or buy decision for a particular product line. The variable costs for each unit of the product are comprised of $18 for direct mat variable overhead. Assume that fixed costs would remain the same under both the make and buy decisions. The company is offered a price of $35 per unit from an external su of the following statements is true? Select one: a. The company should buy the product from the external supplier, as this would save the company $7 per unit. b. The company would be indifferent to the make or buy decision c. The company would save $7 per unit if it manufactured the products in-house. d. The company should buy the product from the external supplier, as this would save the company $10 per unit. ABC Inc, produces a product with a selling price of $10 per unit, variable costs of $6 per unit and allocated fixed costs of $2 per unit. The company has 2,000 units of excess capacity. A prospective client has approached ABC with a one-time special order for 5,000 units, offering the company $8 per unit. The special order would not have any adverse effects on the company's long-term profits. Should ABC accept this special order? Select one: a. No, as it would decrease profits by $2,000. b. Yes, as it would increase profits by $3,000. c. No, as it would decrease profits by $3,000. d. Yes, as it would increase profits by $2,000. Irrelevant costs are: Select one: a. costs that always stay the same b. costs that do not change between alternatives c. costs that varies as production level changes d. all fixed costs - Product X1 would sell for $30 per unit and cost a fotal of $30,000. - Product Y1 would sell for $35 per unit and cost a total of $120,000. Based on the information provided, what is the optimal production plan for Johnson Inc? Select one: a. Product X and Product Y. b. Product X1 and Product Y1. c. Product X and Product Y1. d. Product X1 and Product Y. In a make or buy decision, which of the following statements is true? Select one: a. The company must choose between accepting or rejecting a new order b. The company would consider the external purchase price of the good to be relevant c. The company would consider variable manufacturing costs to be irrelevant d. The company would consider all fixed manufacturing overhead to be irrelevant Suppose that a company is operating at full capacity. In the decision to accept or reject a special order, which one of the following is an opportunity cost of accepting the special order? Select one: a. There are no opportunity costs. b. The fixed costs related to fulfilling the special order c. The foregone total revenue from the products that the company normally sells d. The foregone contribution margin from regular sales Divulging confidential information is a violation of which of the following ethical standards? Select one: a. Compliance. b. Confidentiality. c. Competence. d. Integrity