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Which of the following costs would be considered sunk costs? Select one: A. CEO salary, not based on performance B. Direct Labor wages C. Yearly

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Which of the following costs would be considered sunk costs? Select one: A. CEO salary, not based on performance B. Direct Labor wages C. Yearly depreciation on factory equipment o D. Utilities expense o E. None of the above Which of the following would be a reason to reject a special order? Select one: A. The incremental revenues exceed the incremental costs O B. The absorption-costing per-unit cost is greater than the price being offered C. The order exceeds the company's excess production capacity D. Qualitative factors that would cause the selling price of the product to increase in the future O E. All of the above O F. None of the above Which of the following correctly illustrates how to calculate contribution margin? Select one: A. Sales - Variable Costs - Operating Costs B. Sales - Fixed Costs - Variable Costs C. Sales - Variable Costs D. Variable Costs / Sales O E. None of the above A low level of operating leverage signifies: Select one: A. Lower risk B. Higher risk O C. Higher overall costs D. Lower overall costs E. None of the above

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