A(n) ____________ cost is the net cash inflow that could be obtained if the resources committed to one action were used in the most desirable other alternative.

A)Avoidable

B)Contribution margin

C)Outlay

D)Opportunity

37. Organizations may manufacture products or provide services they can obtain at lower costs elsewhere in order to:

A)Control quality

B)Have an assured source of supply

C)Maintain a core competency

D)All of the above

38. Joint products are:

A)Any set of products that can use the same resources

B)Products that create production bottlenecks

C)Products that increase in value if sold as a package

D)Two or more products simultaneously produced from a common set of inputs by a single process

39. The point in the production process where joint products become separately identifiable is called:

A)The conversion point

B)The point of sale

C)The split-off point

D)The throughput point

E)None of the above

40. In deciding whether to sell a joint product or to process it further, any costs incurred prior to the split-off point should be:

A)Allocated by size of the product

B)Allocated by weight of the product

C)Considered as a sunk cost

D)Subtracted from joint revenues