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Quiech inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2400 units of
Quiech inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor that would provide 2400 units of product PQ 107 for valters for a price of $150,000, If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following unit costs: In addition to the above costs, if Quirch produces part PQ 107. It would also have a retooling and design cost of $9,800. The relevant costs of producing 2.400 units of product PQ 107 are: $149,000. $129.800. $150,000. $164,200. $148.300. Which of the following statements regarding "opportunity costs" is true? These costs are recorded routinely by most modem cost accounting systems. These costs relate to the benefit lost or foregone when a chosen option (course of action) the benefits of an alternative option from being realized. These costs are generally deductible for federal income tax purposes in the U.S. In terms of most short-run decisions, they are irrelevant
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