Which of the following statements is correct? a. Life-cycle costing tracking costs from start to finish. b. Product life cyele ends when the product is delivered to customers e Product price must be set to cover the costs of manufacturing activities only. d. "Take-back" requirement for product recycle and disposal is customers' responsibility. 2. A division has the following data: Sales $320,000, Variable costs $200,000, and Fixed costs $140,000. If the division were eliminated, the fixed costs would be allocated to other divisions. What is the net impact on the company's overall profit if the division is eliminated? a. $20,000 increase b. $60,000 decrease c. $120,000 decrease d. Can not be determined from the data provided 3. Two alternative projects are under consideration: Revenues Variable costs Fixed costs Project A Project B S360,000 280,000 210,000 180,000 90,000 90,000 Which of the following is (are) relevant in choosing between the projects? a. Revenues. b. Variable costs. c. Fixed costs. d. Both a and b. 4. Which of the following statements is correct? Predatory pricing is illegal. Dumping hurts consumers in the long run. Price discrimination requires market segmentation. a. b. c. d. All of the above. 5. For differential analysis: a. Differential costs are relevant costs b. No fixed costs are differential c. Most variable costs are differential d. Both a and c Which of the following statements is correct? a. Life-cycle costing tracking costs from start to finish. b. Product life cyele ends when the product is delivered to customers e Product price must be set to cover the costs of manufacturing activities only. d. "Take-back" requirement for product recycle and disposal is customers' responsibility. 2. A division has the following data: Sales $320,000, Variable costs $200,000, and Fixed costs $140,000. If the division were eliminated, the fixed costs would be allocated to other divisions. What is the net impact on the company's overall profit if the division is eliminated? a. $20,000 increase b. $60,000 decrease c. $120,000 decrease d. Can not be determined from the data provided 3. Two alternative projects are under consideration: Revenues Variable costs Fixed costs Project A Project B S360,000 280,000 210,000 180,000 90,000 90,000 Which of the following is (are) relevant in choosing between the projects? a. Revenues. b. Variable costs. c. Fixed costs. d. Both a and b. 4. Which of the following statements is correct? Predatory pricing is illegal. Dumping hurts consumers in the long run. Price discrimination requires market segmentation. a. b. c. d. All of the above. 5. For differential analysis: a. Differential costs are relevant costs b. No fixed costs are differential c. Most variable costs are differential d. Both a and c
