In making short-term special decisions, you should: a. use a traditional absorption costing approach. b. focus on total costs. c. separate variable from fixed costs. d. only focus on quantitative factors.

In a decision analysis situation, which one of the following costs is generally not relevant to the decision?A. Differential cost.B. Avoidable cost.C. Incremental cost.D. Historical cost.

When using the general methods to estimate cost behavior,  A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.

Which of the following statements regarding marginal costing is incorrect? Select one: O A. It is useful long-term planning technique OB. It assumes that fixed costs remain fixed over relevant activity ranges O C. It assumes that variable costs vary in proportion to activity O D. It assumes that costs can be classified as variable or fixed

Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain IN YOUR OWN WORDS what "Keep or replace decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.

True or 2. Reasons for using standard costing include: A) Comparing projected costs against actual costs B) Planning and budgeting purposes C) Setting prices in advance D) Identifying specific areas for process improvement E) All of the above

Management may be tempted to overproducea. when using variable costing, in order to increase net income.b. when using variable costing, in order to decrease net income.c. when using absorption costing, in order to increase net income.d. when using absorption costing, in order to decrease net income.

How important is it to trace costs appropriately?  Explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing.  What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace?

Variable costing can also be referred to as: Select one: a. Internal costing b. Cost-plus costing c. Absorption costing d. Marginal costing

Which of the following is not a true statement about variable costs? a. Total cost is known to change in proportion to any changes in related level of volume or activity. O b. When considering total cost behaviour, focus on fixed and variable costs. O c. A total cost that can change in proportion to changes in the number of products produced. O d. Total cost never changes in proportion to any changes in related levels of volume or activity. O e. An important cost to identify so managers can make important management decisions.