A variable production cost incurred after split-off

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Reference no: EM131204448

In a sell or process further decision, which of the following costs is relevant?

I. A variable production cost incurred after split-off.

II. A fixed production cost incurred prior to split-off.

a. Only II

b. Both I and II

c. Neither I nor II

d. Only I

A company's current ratio and an acid-test ratio are both greater than 1. Payment of an account payable would:

a. decrease both the current and acid-test ratios.

b. increase the current ratio but the acid-test ratio would not be affected.

c. increase both the current and acid-test ratios.

d. increase the acid-test ratio but the current ratio would not be affected.

Reference no: EM131204448

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