Chapter 2, Problem 2.15SE

Describe other cost terms (Learning Objectives 6 &7)

Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all.

Differential costs	Variable costs	Controllable costs
Marginal cost	Fixed costs	Average cost
Uncontrollable costs	Sunk costs

1. a. A(n) _____is the cost of making one more unit.
2. b. Gasoline is one of many _____in the operation of a motor vehicle.
3. c. A product’s _____and _____, not the product’s _____, should be used to forecast total costs at different production volumes.
4. d. Within the relevant range, _____do not change in total with changes in production volume.
5. e. The _____per unit declines as a production facility produces more units.
6. f. Costs that differ between alternatives are called _____.
7. g. In the long run, most costs are _____, meaning that management is able to influence or change the amount of the cost.
8. h. _____are costs that have already been incurred.