QUESTION: 73

Since there is no likelihood of them receiving a pay rise in the foreseeable future, your colleagues are considering leaving their current employment and starting their own business.

When preparing the data to evaluate their decision, their current salaries would be:

Incremental costs
Opportunity costs
Sunk costs
Past costs

Answer(s): B

Reveal Solution Next Question

QUESTION: 74

Which THREE of the following are never relevant costs for short-term decision making?

Depreciation costs
Incremental costs
Sunk costs
Variable overhead costs
Committed costs

Answer(s): A,C,E

Reveal Solution Next Question

QUESTION: 75

Which of the following are examples of feedforward control?

Select ALL that apply.

Labour costs for individual jobs are forecast. The forecasts are used as the basis to determine the correct selling price to be quoted to the customer.
The sales volume for the next quarter is forecast and compared with the planned volume. If there is a forecast shortfall action is taken to correct the difference.
A target is set for the cash balance at the period end. The balance shown in the cash

forecast is compared with the target and action is taken to ensure that the target balance is achieved.
Actual inventory volumes are compared with planned volumes and control action is taken to correct any differences.

Answer(s): B,C

Reveal Solution Next Question