of the following would appear on a selling and administrative expense report, but would not appear on a schedule of cash payments budget for selling and administrative items? A. Rental expense B. Office salary expense C. Sales commission expense D. Depreciation expense 2. Select the correct statement regarding opportunity costs. A. Opportunity costs are not recorded in a firm's financial accounting records. B. Opportunity costs should not be considered in decision making. C. Opportunity costs represent sunk costs. D. Opportunity costs is a form of performance costing. 3. Cosmo Drug Manufacturing Corporation invests $2,000,000 of research and development costs on a new drug. When the company launched this product in the market, due to side effects faced by many patients, doctors stopped recommending that pill to their patients. This issue forced the company to stop the production of that pill. The research and development costs in developing this pill are now considered a: A. speculative investment cost B. a relevant cost C. sunk cost D. a product cost 4. Grier Company manufactures eight products in one factory and is considering eliminating product AXP: Sales Less variable costs: Product AXP $80,000 Direct materials (40,000) Direct labor (15,000) Variable manufacturing overhead (5.000) Contribution margin $20,000 Less allocated their share of fixed factory rent costs (30,000) $(10,000) Net Loss What amount of costs are avoidable if Grier eliminates product AXP? A. $40,000 B. $55,000 C. $10,000 A. $60,000