1. Depreciation on existing equipment is special decision making is regarded as:

Select one:

a. an opportunity cost

b. a sunk cost

c. an avoidable cost

d. a variable fixed cost

2. General decision rules associated with outsourcing decisions assume the organisation's goal is to

Select one:

a. Capture market share

b. Minimise constraints

c. Maximise short-term profits

d. Report financial information reliably

3. In applying a relevant quantitative analysis technique to a non-routine operating decision, managers must

Select one:

a. Identify a dependent variable

b. Interpret results in the most favorable way possible

c. Identify input variables

d. Not use estimates

4. In an outsourcing decision, fixed costs are

Select one:

a. Never relevant

b. Relevant if the company is operating outside the relevant range

c. Relevant if they are greater than associated opportunity costs

d. Relevant if they can be avoided through outsourcing