1. Relevant or Differential analysis is best described by which of the following statements:
a. Determines the difference in revenue between 2 options
b. Analyzes opportunity costs.
c. Determines the difference in costs between 2 options
d. Analyzes the changes in revenue and cost between scenarios
2. When should a special order at a discount price be considered?
a. Almost Always, because it means more business and income
b. Never, because total costs increases, which decreases profit
c. When incremental revenue exceeds incremental costs
d. When incremental costs exceeds the incremental revenue
3. Which of the following is most often a relevant cost?
a. Fixed Cost
b. Sunk Cost
c. Variable Cost
4. Total relevant costs are
a Fixed Costs
b. Only Variable Costs
c. Both fixed and variable cost changed with the decision +
5. Relevant or Incremental analysis would be appropriate for
a acceptance of an order at a special price.
b. retain or replace equipment decision
c. sell or process further decision.
d. bll of these.
