As compared to irrelevant cost, the occurrence of relevant costs must ___________?

Related Mcqs:

1. If the relevant incremental costs are $5000 and the relevant opportunity cost of invested capital is $2500, then the relevant inventory carrying costs would be ____________?

   A. $7,500
   B. $7,000
   C. $6,500
   D. $6,000

2. If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

   A. $9,650
   B. $2,350
   C. $3,750
   D. $2,750

3. The relevant ordering costs are added into relevant carrying costs to calculate __________?

   A. relevant total costs
   B. contribution costs
   C. throughput costs
   D. optimized costs

4. The costs that behaves as irrelevant costs in process of decision making are classified as ___________?

   A. past costs
   B. future costs
   C. expected costs
   D. sunk costs

5. The relevant incremental costs are added into the relevant opportunity cost of capital to calculate ___________?

   A. purchase order costs
   B. relevant inventory carrying costs
   C. irrelevant inventory carrying costs
   D. relevant ordering costs

6. If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?

   A. $5,000
   B. $4,500
   C. $5,500
   D. $6,000

7. If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?

   A. $200
   B. $190
   C. $160
   D. $180

8. In a relevant range, the variable cost per unit, selling price and total fixed costs are ___________?

   A. unknown and variable
   B. known and variable
   C. unknown and constant
   D. known and constant

9. If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________?

   A. 678 packages
   B. 648 packages
   C. 658 packages
   D. 668 packages

10. An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as ______________?

    A. variable batch costs
    B. fixed batch costs
    C. variable setup costs
    D. fixed setup costs