Which of the Following Statements in Relation to Making Tactical

question 74

Multiple Choice

Which of the following statements in relation to making tactical decisions is incorrect?

• A) Future costs are always relevant.
• B) Sunk costs are always irrelevant.
• C) Allocated and unitised fixed costs are generally irrelevant.
• D) Opportunity cost is relevant when there is no excess capacity.

Distinguish between direct and indirect costs and their implications in job-order costing.

Understand the treatment of underapplied or overapplied overhead in accounting records.

Identify and use relevant T-account summaries to track production costs and inventory movements.

Analyze raw material requisitions and the impact on cost of production.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, marking the boundary between perceivable and imperceptible stimulus intensity.

Difference Threshold

The minimum difference in stimulation that a person can detect 50% of the time; also known as the just noticeable difference (JND).

Relative Magnitude

The perceived size or importance of one quantity in comparison to another.

Colored Part

This term is vague but could be referring to the iris, which is the colored part of the eye responsible for controlling the size of the pupil.