1- In general. when are variable costs not relevant to a decision? A. when they

Question

1- In general. when are variable costs not relevant to a decision?
A. when they are avoidable.

B. when they do not differ among alternative

C. When they are part of a mixed cost.

D. when they are less than fixed costs.

2.university Memorabilia Inc. is a locally run retail shop. the store usually closes at 5 :00 pm, but the owners have inquired about the extra costs involved by letting the store stay open until 9:01 pm the store manager has listed the following monthly expenditures and their related costs: Item: 1 Manager salary S40000 per year 2. Store rent $5,000 per month 3. Sales associates wages $9 per hour 4. Store utilities $4 per hour which of the above cost items would be relevant to the decision about staying open extra hours?
A- 1 2, 3, and 4

B- 2. 3, and 4

C- 2 and 3

D- 3 and 4

3- Which of the following companies would be the most likely to adopt a job order costing system?
a. Beverage manufacturer

b. Paint manufacturer

c. CPA firm

d. Clothing manufacturer

4- Which of the following should not be considered in the calculation of direct labor cost?

A. the employer's portion of social security and unemployment taxes.

B- The wage rate for each employee multiplied by the number of hours each employee works on each job

c- Fringe benefits given to an employee who works on a job

D. Overtime pay to an employee as a result of production problems not related to a specific job

Explanation / Answer

1 Answer :- (D) When they are less than the fixed costs

2 Answer:- (B). 2, 3 and 4

3 Answer:- (B) Paint Manufacturer

4 Answer:- (A) The employee's portion of social security and unemployment taxes

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