Sunk costs - Study guides, Revision notes & Summaries

Projects that are calculated as having negative NPVs should be o :## rejected or abandoned If adoption of a new product decreases the sales of an old product, what happens? o :## incremental benefits of the new product may be overestimated a cost should be considered sunk when it o :## has no effect on future cash flows originally costs $75,000, book value of $20,000, worth $25,000. What is the opportunity cost? o :## $25,000 the likely effect of discounting nominal ash flows with real...

AREC 202 FINAL EXAM QUESTIONS AND ANSWERS 2024 1. The optimal level of any activity (for consumers, firms or governments) is where A) average benefits from this activity equal average costs of this activity. B) total benefits from this activity equal total costs of this activity. C) marginal benefits from this activity equal marginal costs of this activity. D) marginal benefits from this activity are maximized. -Answer- 1. To decide whether to increase an activity by one unit you should co...

Opportunity Cost Correct Answer-The cost of a good measured by the alternative uses that are foregone by producing the good. Accounting Cost Correct Answer-The actual cost paid for inputs Economic Cost Correct Answer-The amount required to keep an input in its present use or the amount that input would be worth in its next best alternative use. Labor Costs Correct Answer-Costs involving the compensation of employees for their labor - Wage payments are an explicit costs -Wage rate is...

APSC 221 Question and answers already passed 2024/2025 APSC 221 Sunk costs should be included in an engineering economic analysis - correct answer False Decisional equivalence is a consequence of the ________ on the part of a decision maker among available choices. a. indifference b. market analysis c. study of general economic activity levels within an industry d. understanding - correct answer a. indifference T/F: Efficiency means achieving the organizatio...

AREC 202 FINAL EXAM QUESTIONS AND ANSWERS 100% SOLVED 1. The optimal level of any activity (for consumers, firms or governments) is where A) average benefits from this activity equal average costs of this activity. B) total benefits from this activity equal total costs of this activity. C) marginal benefits from this activity equal marginal costs of this activity. D) marginal benefits from this activity are maximized. 1. To decide whether to increase an activity by one unit you should...

Test Bank for Principles of Macroeconomics 9th Edition by Case , Fair | All Chapters | Complete Guide A+. Contents Chapter 1 The Scope and Method of Economics 1 Chapter 2 The Economic Problem: Scarcity and Choice 29 Chapter 3 Demand, Supply, and Market Equilibrium 55 Chapter 4 Demand and Supply Applications 98 Chapter 5 Elasticity 117 Chapter 6 Household Behavior and Consumer Choice 135 Chapter 7 The Production Process: The Behavior of Profit-Maximizing Firms 171 Chapter 8 Short-Run Cos...

Title of Course- Introduction to Managerial Accounting Exam – BUSI2083 VERSSION B Student’s Name: Student’s ID: Date: Time: Section: Instructor: General Instructions •You have 2h to complete the exam. •This Final Exam is worth 25 % of your final grades. •Do not open this exam paper until told to do so. •No papers, cellphones, briefcases, or any other cases are allowed at student desks while the examination is in progress. No books, notes, formula sheets, electronic ...

Capital Budgeting Process (+1 year): Steps o :## Step 1. Generate Ideas (most important step) o Step 2. Analyze individual proposals (CF forecast) o Step 3. Plan the capital budget (plan capital budget, strategic within company) o Step 4. Monitor and post-audit (follow up) Capital Budgeting Process & Projects o :## Process of identifying and evaluating capital projects, projects where cash flow to the firm will be received over a period longer than a year Capital Budgeting Process: Pr...

16. Costs which can be eliminated in whole or in part if a particular business segment is discontinued are called: A) sunk costs. B) opportunity costs. C) avoidable costs. D) irrelevant costs. 17. Consider the following statements: I. Assemble all costs associated with each alternative being considered. II. Eliminate those costs that are sunk. III. Eliminate those costs that differ between alternatives. Which of the above statements does not represent a step in identifying the relevant...

ACCOUNTING 333 QUESTION AND 100% CORRECT ANSWERS 2023/2024 The relevance of a particular cost to a decision is determined by the: (CMA adapted) - CORRECT ANSWER-potential effect on the decision Fixed costs are always classified as sunk costs in differential cost analysis - CORRECT ANSWER-False Albany Industries produces two products. Information about the products is as follows: Product 1 Product 2 Units produced and sold 5,200 11,200 Selling price per unit $ 23 $ 21 Variable cost p...