Indicate whether the following statements are true or false
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Increasing the number of...
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Accounting
Indicate whether the following statements are true or false
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Increasing the number of units in a batch increases batch-levelcosts
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Eliminating a business segment often allows a company to avoidsome facility-level costs
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To analyze a special order decision, a manager should identifydifferential costs and revenues.
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Reliability of the supplier is a critical issue in anoutsourcing decision.
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Availability of idle capacity is often relevant to special orderdecisions
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When making decisions in business, information that cannot bequantified (expressed in numbers) generally is not relevant
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Alternative uses for facilities should be considered in making aspecial order decision
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The purchase price of a old machine is relevant to the decisionof whether or not to replace an old machine
Answer & Explanation
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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
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