A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is called a(n):
A. Uncontrollable cost.
B. Out-of-pocket cost.
C. Incremental cost.
D. Opportunity cost.
E. Sunk cost.
Answer: E
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Dual sourcing refers to contracting with multiple supply sources ______.
A. as a hedge against price decreases by a supplier B. as a buffer against disruptions in the supply chain C. as a way to quickly expand production capacity D. as a way to give an equal opportunity to different suppliers
Why should a code of ethics be put into writing regardless of the size of the business?:
a. It adds value to the share price b. It helps stakeholders know which behaviors are acceptable and which are not c. It satisfies the needs of the board d. It helps profits
Modiste, Inc manufactures two kinds of bags—totes and satchels
The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $24,000. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $33 $43 Direct labor cost per unit $50 $61 Number of units 530 380 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.) A) 90.57% B) 48.31% C) 96.58% D) 1.36%
In a joint venture, the authority of one member to bind the partnership is more limited than in a general partnership
a. True b. False Indicate whether the statement is true or false