The following terms are used to describe various characteristics of costs. Problem 2.59 1. Opportunity cost 4. Prime cost Characteristics of Costs 2. — Out-of-pocket cost 5. Conversion cost sa 5)
3. Sunk cost 6. Average cost Required Choose one of the terms to characterize each of the following amounts.

a. The cost to build an automated assembly line in a factory was $800,000 when the line was installed three yearsago. CUWK

b. The management of a high-rise office building using 2,500 square feet of space in the building for its own management functions but could be rented for $250,000. © P;2

c. The direct-material and direct-labor cost incurred by a mass customizer such as Dell Computer to produce its most popular line of laptop computers. Fame

d. The cost of feeding 500 children in a public school cafeteria is 800perday,or$800\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????},\mathrm{????}\mathrm{????}$1.60 per child per day. OUT eF& POCKET + AVE

e. The cost of merchandise inventory purchased two years ago, which is now obsolete. Su Nic Cous7

f. The cost of direct labor and manufacturing overhead incurred in producing frozen, microwavable pizzas.C@ ~y\/.
g. The 1,000costofofferingacomputerworkshopforagroupof20students,or$1,000\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}ℎ\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}20\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????}\mathrm{????},\mathrm{????}\mathrm{????}$50 per student.