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Chapter 11 - Instructor Homework - Solutions

Chapter 11 - Instructor Homework - Solutions - 1 17...

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Chapter 11 Homework - SOLUTIONS       1
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17) 
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Full costs  of a product are relevant for one - time - only special order pricing decisions.  Answer:  
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FALSE  Explanation:  
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Incremental costs of a  product are relevant for  one - time - only special  order pricing decisions. 
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Diff: 2  Terms: 
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full costs of the  product, one - time - only special order,  relevant costs  Objective: 
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AACSB: 
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Reflective thinking 27) 
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Producing another 10,000 units  may  increase the fixed cost of rent.   Answer:  
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TRUE  Explanation:  
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True, if additional  capacity must be added  to accommodate the  additional production  needs. 
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Diff: 3  Terms: 
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incremental cost  Objective: 
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AACSB: 
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Analytical skills  29) 
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Sometime s qualitative factors are the most important factors in make - or - buy decisions.   Answer:  
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TRUE  Diff: 2  Terms: 
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qualitative factors  Objective: 
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AACSB: 
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