1. In a sell or process further decision, which of the following costs is releva
ID: 2415458 • Letter: 1
Question
1. In a sell or process further decision, which of the following costs is relevant?
I. A variable production cost incurred after split-off.
II. A fixed production cost incurred prior to split off.
Both I and II
Neither I nor II
Only II
Only I
2. Bactrian Corporation sells desks at $600 per desk. The variable costs associated with each desk are as follows:
Total fixed costs for the period are $175,000. The contribution margin per desk is _____.
A.Both I and II
B.Neither I nor II
C.Only II
D.Only I
2. Bactrian Corporation sells desks at $600 per desk. The variable costs associated with each desk are as follows:
Direct materials $100 Direct labor $70 Factory overhead $20Total fixed costs for the period are $175,000. The contribution margin per desk is _____.
Explanation / Answer
1. In a sell or process further decision, which of the following costs is relevant?
Only I ie I. A variable production cost incurred after split-off.
D.Only I ie I. A variable production cost incurred after split-off.
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