1. In a proposal to increase the production of clock radios, the sales managers

Question

1. In a proposal to increase the production of clock radios, the sales managers of Rinaldo Electronics reported the total additional cost required to meet the increased production level. The increase in total cost is known as the A. opportunity cost. B. out-of-pocket cost. C. controllable cost. D. incremental cost. 2. Irrelevant costs are costs that are A. different among alternatives. B. avoidable costs. C. opportunity costs. D. sunk costs 3. Which of the following typically would be considered an incremental cost? A.Conversion cost B. Direct product cost C. Period cost D. Factory overhead cost 4. Which of the following techniques is most useful for a special order decision? A. Payback method B. Present value method C. Accounting rate-of-return method D. Incremental analysis

Explanation / Answer

b a b d

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