relevant cost analysis is: A. variable costs are always relevant. B. fixed costs are always irrelevant. C. Incremental future costs and revenues are always releva D. depreciation is always irrelevant.
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- A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.Which of the following statements is false? (You may select more than one answer.)a. Under some circumstances, a sunk cost may be a relevant cost.b. Future costs that do not differ between alternatives are irrelevant.c. The same cost may be relevant or irrelevant depending on the decision context.d. Only variable costs are relevant costs. Fixed costs cannot be relevant costs.When contribution is positive but equal to fixed cost: a. There is loss less than fixed cost b. There is loss equal to fixed cost c. There is loss more than fixed cost d. There will be neither profit nor loss
- A cost that has been incurred in the past, cannot be recouped, and is not relevant to future decisions is termed a a. period cost b. replacement cost c. sunk cost d. differential cost3. Which of the following is correct regarding a relevant range? a Total variable costs will not change. b. Total flxed costs will not change. C Actual fixed costs usually fall outside the relevant range. d. The relevant range cannot be changed after being established.In incremental analysis, ○ only variable costs are relevant. costs are not relevant if they change between alternatives. all costs are relevant if they change between alternatives. ○ only fixed costs are relevant.
- Costs that will differ between alternatives and influence the outcome of a decision are Select one: O a. None of the answers are correct O b. Sunk costs. O c. Product costs. O d. Period costs. e. Relevant costs.Which one of these is an example of a variable cost? a. Raw material expenses b. Depreciation costs c. None of the choices d. RentThe following statements are correct excerpt? O A. Only avoidable costs are relevant for decision making B. Incremental cost may include both variable and fixed costs OC. All irrelevant costs are sunk costs OD. All direct or indirect cost depends on the cost object
- Depreciation is an example of a mixed cost. Select one: O a. FALSE O b. TRUEA sunk cost can be described as which of the following? A historical cost Cannot be changed regardless of future actions taken All of the items on the list describe a sunk cost. Always irrelevantAn opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized type of variable cost. d. a specialized type of fixed cost.