a. exit help the decision maker concentrate on the apt(p) data
b.will plainly include future costs
c.will only include costs that differ among alternatives
d.All of these answers argon correct.
reception:dDifficulty:2Objective:2
Terms to project:relevant costs
2.A computer system installed last form is an example of a(n):
a.sunk cost
b.relevant cost
c.differential cost
d.avoidable cost
exercise:aDifficulty:1Objective:2
Terms to instruct:sunk costs
3.In evaluating different alternatives, it is useful to concentrate on:
a.variable costs
b.fixed costs
c.total costs
d.relevant costs
Answer:dDifficulty:1Objective:2
Terms to Learn:relevant costs
4.Jims 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda civic instead for $3,000 cash.
Julie estimated the following costs for the twain cars:
Geo PrizmHonda Civic
Acquisition cost$15,000$3,000
Repairs$ 3,000รข€"
Annual operating costs
(Gas, maintenance, insurance)$ 2,280$2,100
What should Jim do? What are his savings in the first year?
a.Buy the Honda Civic; $9,780
*b.Buy the Honda Civic; $180
c.Fix the Geo Prizm; $5,518
d.Fix the Geo Prizm; $5,280
Answer:bDifficulty:2Objective:2
Terms to Learn:relevant costs
Geo ($3,000 + $2,280) Honda ($3,000 + $2,100) = $180 cost savings with the Honda option
5.When making decisions:
a.quantitative factors are the most important
b.qualitative factors are the most important
c.appropriate tilt must be given to both quantitative and...If you ask to get a full essay, order it on our website: Ordercustompaper.com
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