Quiz Managerial Accounting (Sesi 4)

Relevant costs are ...

• All fixed and variable costs

• All costs that would be incurred within the relevant range of production

• Past costs are expected to be different in the future

• Anticipate future costs that will differ among various alternatives

• a

• b

• c

• d

Which of the following is not a characteristic of relevant costing information? it is...

• 1. Associated with the decision under consideration

• Significant to the decision maker

• Readily quantifiable

• 1. Related to a future endeavor

Costs that can be eliminated in whole or in part by choosing one alternative over another is...

• Avoidable costs

• Unavoidable costs

• Sunk costs

• Relevant costs

Opportunity cost One-time order that is not considered part of the company's normal ongoing business is called...

• 1. Make or buy

• Special orders

• Managing constraints

• Join products

A cost incurred in the past that cannot be changed by any future action is...

• 1. Opportunity costs

• Sunk costs

• Relevant costs

• Avoidable costs

• 1. $1,000

• $5,000

• $10,000

• $4,000

• 1. $ 6.00 per minute; $5.00 per minute

• 1. $ 12.00 per minute; $10.00 per minute

• 1. $ 6.00 per minute; $10.00 per minute

• 1. $ 10.00 per minute; $6.00 per minute

The capacity of a bottleneck can be avoided with the methods below, except...

• 1. Maximizing the total contribution margin

• 1. Working overtime

• 1. Invest in additional machines

• 1. Focusing business process improvement efforts.

X plc intends to use relevant costs as the basis of the selling price for a special order: the printing of a brochure. The brochure requires a particular type of paper that is not regularly used by X plc although a limited amount is in X plc's inventory which was left over from a previous job. The cost when X plc bought this paper last year was $15 per ream and there were 100 reams in inventory. The brochure requires 250 reams. The current market price of paper is $26 per ream, and the resale value of the paper in inventory is $10 per ream.

The relevant cost of the paper to be used in printing the brochure is...

• $2,500

• $4,900

• $5,400

• $6,500