tb chap 10 - 1. The difference in cost between or among...

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1. The difference in cost between or among various alternative decisions describes: a. differential cost. b. ad hoc discount. c. constraint. d. scarce resource. correct: a 2. When a company has one scarce resource, it should produce and sell the product with the highest: a. selling price. b. selling price per unit of the scarce resource. c. contribution margin. d. contribution margin per unit of the scarce resource. correct: d 3. When management chooses one course of action over another, the potential benefit lost as a result of the chosen action is called: a. opportunity cost. b. relevant costing. c. make-or-buy decision. d. sunk cost. correct: a 4. In evaluating courses of action, managers should: a. select the alternative that provides the lowest incremental benefit to the company. b. compare the net benefits of all courses of action against competitors' courses of action. c. evaluate the "change nothing" alternative as having zero incremental benefit. d.
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This note was uploaded on 12/12/2008 for the course ACCT 310 taught by Professor Nacemagner during the Fall '08 term at Western Kentucky University.

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tb chap 10 - 1. The difference in cost between or among...

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