True or false :1- One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is.2- Future costs that do not differ among the alternatives are not relevant in a decision.3- An avoidable cost is a cost that can be eliminated ( in whole or in part ) by choosing one alternative over another.4- a sunk cost is a cost that has already been incurred and cannot be avoided regardless of what action is chosen.5- if by dropping a product a firm can avoid more in fixed costs than it loses in contribution margin, then the firm is better off economically if the product is dropped. 6-Two or more different products that are manufactured in the same production period are known as joint products.7-Managers should pay little attention to bottleneck operations because they have limited capacity for producing output.8- Opportunity costs are recorded in the accounts of an organization.9- All other things equal, it is profitable to continue processing a joint product after the split off point so long as the incremental revenue from further processing exceed the incremental costs of further processing.10- Joint production cots are relevant costs in decisions about what to do with a product from the split off point onward in the production process.
Fixed costs to a product
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