Managerial Financial Accounting Chapter 7 Practice Quiz

Managerial Financial Accounting Chapter 7 Practice Quiz -...

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Self Study, Question 1
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Correct. Fixed costs are never incremental costs. False True Self Study, Question 2 Correct. (Appendix) Generally, parts should be inspected prior to being sent to a department that is a bottleneck. False True Self Study, Question 3 Correct! An incremental cost is also known as a differential or relevant cost. Differential costs are the cost differences between two alternatives. Differential costs are sometimes referred to as ______________costs. unavoidable
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relevant sunk opportunity Self Study, Question 4 Correct! Sunk costs are costs incurred in prior periods and therefore can not be changed. Which of the following costs should not be taken into consideration when making a decision? Sunk costs. Differential costs. Relevant costs. Opportunity costs.
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Self Study, Question 5 Correct! Differential is another name for relevant and incremental. Fixed overhead is constant in total and will not differ between decisions. As such, it is not differential cost. Which of the following is often not a differential cost?
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Managerial Financial Accounting Chapter 7 Practice Quiz -...

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