Question
Which of the following costs would be considered sunk costs? Select one: A. Yearly depreciation on factory equipment B. CEO salary, not based on performance
Which of the following costs would be considered sunk costs?
Select one:
A. Yearly depreciation on factory equipment
B. CEO salary, not based on performance
C. Direct Labor wages
D. Utilities expense
E. None of the above
part 2-
Which of the following is not a factor to consider when deciding whether to accept a special order?
Select one:
A. Whether this order will hurt the brand name of the company
B. Whether other potential orders would be more profitable
C. Whether additional fixed costs would need to be incurred
D. Whether the offered price is sufficient to cover prime costs and fixed overhead allocated
E. All of the above
PART- 3
Which of the following would be a reason to reject a special order?
Select one:
A. The incremental revenues exceed the incremental costs
B. The order exceeds the company's excess production capacity
C. The absorption-costing per-unit cost is greater than the price being offered
D. Qualitative factors that would cause the selling price of the product to increase in the future
E. All of the above
F. None of the above
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