Test bank cost and management accounting 4e by barfield ch12

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... Chapter 12 If a cost is irrelevant to a decision, the cost could not be a b c d a sunk cost a future cost a variable cost an incremental cost ANSWER: EASY incremental fixed costs all costs of inventory... cost irrelevant cost future avoidable cost opportunity cost ANSWER: b EASY The $9,000 cost of the original machine represents a(n) a b c d sunk cost future relevant cost historical relevant cost. .. that capacity a b c d sunk costs incremental costs fixed costs prime costs ANSWER: 10 sunk costs yes yes no yes ANSWER: EASY d historical costs yes no no yes allocated costs no no yes yes EASY
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