51.              Which of the complying with is a true statement about expense habits in incremental analysis?

1.Fixed expenses will certainly not adjust between choices.

You are watching: The true statement about cost behavior is that:

2.Fixed costs might readjust in between alternatives.

3.Variable expenses will constantly readjust in between alternatives.




d.2 and also 3

52.              A company is considering the complying with alternatives:

Alternative 1Alterindigenous 2


Variable costs60,00070,000

Fixed costs35,00035,000

Which of the complying with are relevant in picking in between the alternatives?

a.Variable costs


c.Fixed costs

d.Variable expenses and solved costs

53.              It prices Garner Company $12 of variable and $5 of solved expenses to develop one bathroom range which usually sells for $35. A foreign wholesaler provides to purchase 3,000 scales at $15 each. Garner would incur distinct shipping prices of $1 per scale if the order were embraced. Garner has actually enough unused capacity to create the 3,000 scales. If the special order is accepted, what will certainly be the effect on net income?

a.$6,000 increase

b.$6,000 decrease

c.$9,000 decrease

d.$45,000 increase

54.              Baden Company manufactures a product via a unit variable cost of $100 and a unit sales price of $176. Fixed production costs were $480,000 when 10,000 units were created and marketed. The company has a one-time possibility to offer a second 1,000 systems at $140 each in a foreign industry which would certainly not impact its existing sales. If the company has enough capacity to create the extra devices, acceptance of the distinct order would certainly affect net revenue as follows:

a.Income would decrease by $8,000.

b.Income would boost by $8,000.

c.Income would certainly rise by $140,000.

d.Income would boost by $40,000.

55.              In increpsychological analysis,

a.costs are not appropriate if they change in between alternatives.

b.all expenses are appropriate if they readjust between choices.

c.only solved expenses are relevant.

d.only variable costs are appropriate.

56.              If a plant is operating at complete capacity and also receives a one-time chance to accept an order at a special price listed below its usual price, then

a.only variable costs are relevant.

b.addressed costs are not appropriate.

c.the order will certainly likely be embraced.

d.the order will likely be rejected.

57.              Miley, Inc. has excess capacity. Under what instances must the agency accept a distinct order for less than the existing offering price?


b.When added solved expenses need to be incurred to accommodate the order

c.When the company thinks it deserve to usage the cheaper products without the customer’s knowledge

d.When increpsychological earnings exceed incremental costs

58.              If a agency need to expand also capacity to accept a one-of-a-kind order, it is most likely that there will certainly be

a.a boost in unit variable prices.

b.no boost in addressed expenses.

c.a rise in variable and resolved prices per unit.

d.an increase in resolved expenses.

59.              Which of the following is true if a firm deserve to accept a one-of-a-kind order without affecting its consistent sales and is within plant capacity?

a.Net revenue will not be impacted.

b.Net revenue will certainly increase if the special sales price per unit exceeds the unit variable costs.

c.Net revenue will certainly decrease.

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d.More resolved expenses will certainly more than likely be incurred.

60.              If a firm anticipates that other sales will certainly be influenced by the acceptance of a distinct order, then