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Unformatted text preview: Correct Answer: activities that cause costs to increase as the activity increases. Response Feedback: Question 5 2 out of 2 points The JKL Restaurant had sales revenues and food costs in 2009 of $800,000 and $600,000, respectively. In 2010, JKL will be introducing a new menu item that will generate $100,000 in sales revenues and $40,000 in food costs. Assuming no changes are expected for the other food items, the differential operating profit for 2010 is: Answer Selected Answer: $60,000. Correct Answer: $60,000. Response Feedback: Question 6 2 out of 2 points The just-in-time (JIT) methods of production focuses on: Answer Selected Answer: reducing inventories. Correct Answer: reducing inventories. Response Feedback: Question 7 2 out of 2 points Costs that change in response to a particular course of action are: Answer Selected Answer: differential costs Correct Answer: differential costs...
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- Spring '11