PAPER 62

“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do youagree? Explain

Which one of the following statement is not correct? Group of answer choices -Opportunity costs are only considered when resources are limited. -Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs. -Both fixed and variable costs influence short-term decision-making. -Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action.

“Sunk costs are easy to spot—they’re the fixed costs associated with a decision.” Do you agree? Explain.

Listed below are a number of statements concerning relevant versus irrelevant costs and benefits. Complete each statement by providing the missing term or phrase. (Terms may be used more than once as an answer.) 1. _____ are costs that have already been incurred and are not relevant to future decisions 2.______ is a measure of the limit placed on a specific resource 3. A/an ________ is the foregone benefit of choosing to do one thing instead of another  4. Monthly Utility costs are estimated to be 1,200 regardless of the course action; in this case the utility costs are considered as a/an__________ 5. When a company has not yet reached the limit on its resources it has _________ 6. A/an _________ has the potential to influence a particular decision and will change depending on the alternative a manager selects.  7. at __________ opportunity costs become relevant and sould be incorporated into the analysis.  8. When managers are forced to choose one alternative over another due to…

In your own words, explain what differential costs mean. How are fixed costs and variable costs related to differential costs? Provide an example of differentials costs by considering a personal or professional decision you recently made where you had to choose between two alternatives. Identify the examples of differential costs within this experience.

Sunk costs are easy to spot - they're simply the fixed costs associated with a decision." Do you agree? Explain.

I need help on finding getting the amount of the Cups line is discontinued. Thank you. The images are on the attachments below

In incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.

Which of the following statements is false? (You may select more than one answer.)a. Under some circumstances, a sunk cost may be a relevant cost.b. Future costs that do not differ between alternatives are irrelevant.c. The same cost may be relevant or irrelevant depending on the decision context.d. Only variable costs are relevant costs. Fixed costs cannot be relevant costs.

Which of the following are true of sunk costs? More than one answer may be correct. Multiple select question. They cannot be changed by the decision today to accept or reject a project. They are the costs that a firm has already paid or has already incurred the liability to pay. They cannot be measured.

When making decisions, managers should consider a. revenues that differ between alternatives. b. costs that do not differ between alternatives. c. only variable costs. d. sunk costs in their decisions.

Which of the following best describes an "opportunity cost"? Group of answer choices costs that were incurred in the past and cannot be changed The distribution of all products to be sold Expected future costs that differs among alternatives Benefits foregone by not choosing an alternative course of action

When dealing with Make or Buy - we have several alternatives that could be possible.   Like with any problem associated with relevant decision making, we have to list all of our alternatives side by side and choose the best one.  Yet, as we've discussed, there are items that are important that can be non-financial.  For instance, if a series of alternatives suggests we should drop a product line because the numbers say it'd be a good move, do we just do it?  What about the political fall out?  The loss of jobs? All of these things need to be weighed when making these all to complicated decisions.

For a cost to be relevant to decision-making, it must be: in the future and differ among alternatives only be in the future O only has to differ among alternatives be larger in dollar amount than a specified limit O None of these is correct.