Which of the following is a relevant cost?

A. A sunk cost

B. A committed cost

C. An incremental cost

D. A historical cost

A project is about to be launched. Two of the three possible outcomes and their associated probabilities are as follows:

The remaining possible outcome is a $70,000 gain.

What is the correct calculation of the expected value of the project?

A. ($30,000 + $70,000 - $25,000) / 3

B. ($30,000 + $70,000 - $25,000) x (0.7 + (1.0 - (0.2 + 0.7)) + 0.2)

C. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) + ($25,000 x 0.2)

D. ($30,000 x 0.7) + ($70,000 x (1.0 - (0.2 + 0.7))) - ($25,000 x 0.2)

Which of the following statements relating to risk and uncertainty is correct?

A. Risk exists when we do not know all of the possible outcomes.

B. Risk exists when we know all of the possible outcomes but not their probabilities.

C. Uncertainty exists when we know all of the possible outcomes but not their probabilities.

D. Uncertainty exists when we know all of the possible outcomes and their probabilities.

A company uses an integrated accounting system. The following data relate to the latest period.

At the end of the period, the entry in the production overhead control account in respect of under or over absorbed overheads will be:

A. $22,672 debit.

B. $2,208 credit.

C. $2,208 debit.

D. $22,672 credit.

The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin. What would be the selling price per unit?

A. $37.80

B. $46.20

C. $45.00

D. $55.00