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

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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

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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 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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