1. The value deducted from the revenue stream, which usually has no obligation toward covering expenses is called: A. Royalty B. Operating Expenses C. Capital Investments D. Taxes

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 12E
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1. The value deducted from the revenue stream, which usually has no obligation toward covering
expenses is called:
A. Royalty
B. Operating Expenses
C. Capital Investments
D. Тaxes
2.
.are those unaffected by changes in activity level of production over a feasible
range of operations for the capacity or capability available.
A. Variable Cos
B. Fixed Cost
C. Direct Cost
D. Sunk Cost
is appropriate when benefits to be received from an asset are expected
3.
to remain constant over the asset's service life.
A. Straight Line Depreciation Method
B. Declining Balance Depreciation Method
C. Unit of Production Depreciation Method
D. All of the above
Transcribed Image Text:1. The value deducted from the revenue stream, which usually has no obligation toward covering expenses is called: A. Royalty B. Operating Expenses C. Capital Investments D. Тaxes 2. .are those unaffected by changes in activity level of production over a feasible range of operations for the capacity or capability available. A. Variable Cos B. Fixed Cost C. Direct Cost D. Sunk Cost is appropriate when benefits to be received from an asset are expected 3. to remain constant over the asset's service life. A. Straight Line Depreciation Method B. Declining Balance Depreciation Method C. Unit of Production Depreciation Method D. All of the above
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