1. Which of the following is true with regard to budgeting vs. long-range planning?
Both tend to be very detailed.
They are the same in all significant aspects.
Budgeting is oriented more toward short-term goals; long-range planning toward long-term goals.
The maximum length for both usually is a year, with shorter periods of time also common.
2. The potential benefit that may be obtained by following an alternative course of action is termed a(n):
avoidable cost.
incremental cost.
opportunity cost.
sunk cost.
3. An order at a special price that is accepted will increase income if the revenue received exceeds the:
variable manufacturing costs associated with the order.
fixed and variable costs associated with the order.
incremental costs associated with the order.
variable manufacturing, selling, and administrative costs associated with the order.