1. When a company is involved in only one activity in the entire value chain, it is vertically integrated? ( True or False)
2. Hal currently works as the fry guy at Burger Haven but is thinking of quitting his job to attend college full time next semester. Which of the following would be considered an opportunity cost of attending college? A. Hal's lost wages at burger Haven B. The cost of cummutiing to the burger haven job C. the cost of the text book D. the cost of cola that hal will consure during class.
3. The book value of old equipment is a relevant cost in a decision to replace that equipment. (Ignore taxes.) ( True or False)
4. Two or more products produced from a common input are called:? A. Joint cost B. sunk cost C. joint product D. Common costs
5. Only future costs that differ between alternatives are relevant in decision making? (True or False)
6. Fixed costs may or may not be sunk costs.? ( True or False )
7. The term joint cost is used to describe the costs incurred after the split-off point in a process involving joint products. (True or False)
8. Opportunity costs are not usually recorded in the accounts of a business? (True or False)
9. A cost that can be avoided by choosing one alternative over another is not relevant for decision purposes. ( True or False)
10. The split-off point in a process that produces joint products is the point in the manufacturing process at which the joint products are sent to separate customers. ( True or False )