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Question 1 4 / 4 pts _______________ are the costs associated with not choosing the other alternative

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Question 1

4 / 4 pts

_______________ are the costs associated with not choosing the other alternative.

  

Avoidable costs

  

Sunk costs

  

Differential costs

  

Opportunity costs

 

 

Question 2

4 / 4 pts

Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on future events) and should be excluded in decision-making?

  

avoidable costs

  

differential costs

  

sunk costs

 

differential revenues

 

 

Question 3

4 / 4 pts

Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment?

  

comparing contribution margins and fixed costs

  

comparing total contribution margin under each alternative

  

comparing gross margin and variable costs

  

comparing contribution margins and variable costs

 

 

Question 4

4 / 4 pts

When should a segment be dropped?

  

only when the decrease in total contribution margin is less than the decrease in fixed cost

  

only when the increase in total contribution margin is more than the decrease in fixed cost

  

only when the decrease in total contribution margin is less than the decrease in variable cost

  

only when the decrease in total contribution margin is equal to fixed cost

 

 

Question 5

4 / 4 pts

When operating in a constrained environment, which products should be produced?

  

products with the highest selling price

   

products with the lowest allocated joint cost

  

products with the highest contribution margin per unit of the constrained process

   

products with the highest contribution margin per unit