Marcella paid $20 for a music CD for which she later was offered $25. After that

Question

Marcella paid $20 for a music CD for which she later was offered $25. After that someone offered her $30 for the CD. If marcella keeps the CD, the amount of her opportunity cost is $55. true/fase

A business segment should not be eliminated if the revenue generated by the segment exceeds its fixed costs. true/fase

The current market value of equipment owned by a company is a sunk cost and should not be taken inot account in deciding whether or not to replaced the equipment. true/false

Which of the following should be classified as production costs?
a)Direct materials and selling costs.
b) direct labor and administrative costs.
c) Manufacturing overhead and selling and administrative costs.
d)Direct materials, direct labor, and selling and administrative costs.
e) Direct materials, direct labor, and manufacturing overhead.

Explanation / Answer

Direct Labor, Direct Materials and Manufacturing Overhead

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