These costs relate to the benefit lost or foregone when a chosen option ( course of action ) precludes the benefits from an alternative option . These costs are generally deductible for federal income tax purposes . In terms of most short-run decisions , they are irrelevant .
Question 5 . Question : A useful device for solving production problems involving
multiple products and limited resources is : Student Answer : Gross profit per unit of product . Contribution per unit of scarce resource . Value-stream costing . Relevant cost pricing . The contribution income statement .
Question 6 . Question : Relevant costs for a make-or-buy decision for a component part
include all of the following EXCEPT :
These costs relate to the benefit lost or foregone when a chosen option ( course of action ) precludes the benefits from an alternative option . These costs are generally deductible for federal income tax purposes . In terms of most short-run decisions , they are irrelevant .
Question 5 . Question : A useful device for solving production problems involving
multiple products and limited resources is : Student Answer : Gross profit per unit of product . Contribution per unit of scarce resource . Value-stream costing . Relevant cost pricing . The contribution income statement .
Question 6 . Question : Relevant costs for a make-or-buy decision for a component part