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Category > Economics Posted 05 May 2017 My Price 8.00

12–1 What is a relevant cost?

12–1    What is a relevant cost?

12–2    Define the following terms: incremental cost, opportunity cost, and sunk cost.

12–3    Are variable costs always relevant costs? Explain.

12–4    “Sunk costs are easy to spot—they’re the fixed costs associated with a decision.” Do you agree? Explain.

12–5    “Variable costs and differential costs mean the same thing.” Do you agree? Explain.

12–6    “All future costs are relevant in decision making.” Do you agree? Why?

12–7    Prentice Company is considering dropping one of its product lines. What costs of the product line would be relevant to this decision? What costs would be irrelevant?

 

 

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Alpha Geek
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Status NEW Posted 05 May 2017 12:05 PM My Price 8.00

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file 1493989095-1364281_1_636294897560874357_relevant-cost-theory-.docx preview (565 words )
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