36. Which of the following are relevant in deciding whether to accept or reject

Question

36. Which of the following are relevant in deciding whether to accept or reject a special order?
A. The impact the order will have on existing business.
B. The price that will be charged on the special order.
C. The incremental cost of filling the special order.
D. All of the above.
26. One of the shortcomings of traditional managerial accounting systems is that
A. very little emphasis is put on reducing costs.
B. too much effort is focused on product quality.
C. not enough focus is put on activities that drive costs.
D. too much emphasis is put on costs.

27. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. If the company decided to adopt an ABC costing system to accumulate costs for its service, what would be an appropriate cost driver to use for the cost of the packaging envelopes provided to customers?
A. Number of miles to be driven in the delivery
B. Number of customers
C. Amount of fuel used in the truck
D. Number of packages

Explanation / Answer

D. All of the above.

C. not enough focus is put on activities that drive costs.


A. Number of miles to be driven in the delivery

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