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Indicate whether the following statements are true or false       -    Increasing the number of...

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Question

Accounting

Indicate whether the following statements are true or false

      -   

Increasing the number of units in a batch increases batch-levelcosts

      -   

Eliminating a business segment often allows a company to avoidsome facility-level costs

      -   

To analyze a special order decision, a manager should identifydifferential costs and revenues.

      -   

Reliability of the supplier is a critical issue in anoutsourcing decision.

      -

Availability of idle capacity is often relevant to special orderdecisions

      -

When making decisions in business, information that cannot bequantified (expressed in numbers) generally is not relevant

      -

Alternative uses for facilities should be considered in making aspecial order decision

      -

The purchase price of a old machine is relevant to the decisionof whether or not to replace an old machine

Answer & Explanation Solved by verified expert
3.7 Ratings (471 Votes)
1 False Batch level costs are those costs which are incurred once for each batch regardless of the size of the batch such as setup costs 2 True Facility level cost are costs    See Answer
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