In making short-term decisions:
a. sunk costs should be identified.
b. costs should be included if they will still remain.
c. sunk costs should not be included in the analysis.
d. Both a and b answers are correct.
e. All of the answers are correct.
c
You might also like to view...
________ postulated that myths involve binary opposition, in which two opposing ends of some dimension are represented (such as good versus evil)
A) Levi-Strauss B) Freud C) Hofstede D) Bettelheim
FIFO is the inventory costing method that follows the physical flow of the goods
Indicate whether the statement is true or false
In a trade show, a manufacturer provides special incentive money to channel members for certain performances such as running advertisements for one of the manufacturer's brands or doing product demonstrations with potential customers.
Answer the following statement true (T) or false (F)
Pager company has a division that manufactures a component that sells for 58$ and has a variable cost of 24$ and fixed cost of 16$. Another division wants to purchase the component. What is the minimum transfer price if the division is operating at capacity?
A. $22 B. $66 C. $24 D. $58