Costs that remain the same among alternatives are

231) Costs that remain the same among alternatives are
A) sunk costs.
B) irrelevant costs.
C) controllable costs.
D) uncontrollable costs.
Answer:  B
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

232) Which of the following types of information differs between alternatives and can affect the future?
A) Historical
B) Irrelevant
C) Relevant
D) Predictable
Answer:  C
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


233) Which of the following represents a sunk cost?
A) A historical cost that is always relevant
B) A historical cost that is never relevant
C) An outlay expected to be incurred in the future
D) A cost that is relevant to any decision
Answer:  B
Diff: 2
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
234) Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.
A) sunk
B) imported
C) alternative
D) differential
Answer:  D
Diff: 2
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

235) When deciding to buy a new computer, all of the following should be considered except for the
A) cost of the new computer.
B) cost of the old computer.
C) games that come with the new computer.
D) warranty on the new computer.
Answer:  B
Diff: 2
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


236) When making a decision to buy a new computer, all of the following should be considered except
A) differential costs.
B) relevant costs.
C) qualitative characteristics.
D) sunk costs.
Answer:  D
Diff: 2
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
237) A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?
A) The cost of the new equipment
B) The salary of the factory manager
C) The cost of raw materials
D) The original purchase price of the current machinery
Answer:  A
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

238) A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?
A) The original purchase price of the current machinery
B) The additional labor required to run the new equipment
C) The accumulative repairs costs of the current machinery over the years
D) The cost of raw materials
Answer:  B
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


239) A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery. Which of the following costs would be relevant to its decision?
A) The salary of the restaurant manager
B) The price the restaurant sells the apple pies for
C) The purchase price of the apple pies purchased from the local bakery
D) The original purchase price of the current machinery
Answer:  C
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
240) A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. All of the following costs would be relevant to its decision except
A) the cost per gallon of gasoline.
B) the purchase price of the hybrid model.
C) the book value of the current fleet of sales vehicles.
D) the purchase price of the gasoline-engine model.
Answer:  C
Diff: 1
LO:  2-6
EOC:  E2-29A
AACSB:  Analytical Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits