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.