Three years ago, you could have sold your first home to purchase a second home but instead, kept your first home and took out a greater mortgage to purchase the second home for $1 million. Today, you are desperate for cash and face the decision to sell that second home for the current market value, roughly $1.5 million. The $1 million purchase price of the second home is considered as: an opportunity cost. a sunk cost. a differential cost. an irrelevant benefit. Which of the following is classified as a product cost? Which of the following is classified as a product cost? Wages of assembly-line Wages of a factory workers supervisor No No Yes Yes No Yes Yes No . B O O C D Xavier Manufacturing Inc. leases fleets of truck to deliver its finished products to customers. Which of the following terms correctly describes the monthly lease payments made on the delivery trucks? Direct Cost Fixed Cost Yes Yes Yes No No Yes No No B D The repair costs paid for the copy machine in the advertizing unit of a company is an example of: Product Cost No Yes Yes No Manufacturing Overhead Yes No Yes No 0 B A O D