quiz acc 2 ch 21

quiz acc 2 ch 21 - Question 1 1 / 1 point A cost that has...

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Unformatted text preview: Question 1 1 / 1 point A cost that has already been incurred and cannot be changed is called a(n) Out of Pocket cost Joint cost Opportunity cost Sunk Cost Question 2 1 / 1 point Incremental revenues Cause revenues to remain steady Always increase revenue when one course of action is selected over another May increase or decrease when one course of action is selected over another Always decrease revenue when one course of action is selected over another Question 3 1 / 1 point By choosing to go into business for himself, Joe Green foregoes the possibility of getting a highly paid job with a large company. This is called a (n) Opportunity cost Sunk cost Out-of-pocket cost Joint Cost Question 4 1 / 1 point Which of the following types of cost are always relevant to a decision? Incremental costs. Average costs. Sunk costs. Fixed costs. Question 5 1 / 1 point Which is an example of joint products? Sugar and beef. Pens and erasers. Regular gasoline and premium gasoline. Iron and plastic. Question 6 1 / 1 point Which factor is NOT relevant in deciding whether or not to accept a special order? Incremental revenue that will be earned. The effect that the order will have on the company's regular sales volume and selling price. The average cost of production if the special order is accepted. Additional costs that will be incurred. Question 7 1 / 1 point In deciding whether or not to accept a special order, what is the opportunity cost of using machinery for which the firm has sufficient excess capacity to accept the order? The historical cost of the machinery. The undepreciated cost of the machinery. Zero. The same machinery cost allocated to regular production orders. Question 8 1 / 1 point Accepting a special order is profitable whenever the revenue from the special order exceeds: The average unit cost of production multiplied by the number of units in the order. The fixed manufacturing costs for the period. The incremental cost of producing the order. The materials and direct labor costs of producing the order. Question 9 1 / 1 point Classic Furniture produced a batch of 2,000 coffee tables at a cost of $325,000. It is discovered that the entire batch was finished improperly. Classic can sell the tables as seconds for $275,000 or spend an additional $285,000 to refinish them and sell them for $575,000. In deciding whether to rework the tables or sell them as is, management should:...
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quiz acc 2 ch 21 - Question 1 1 / 1 point A cost that has...

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