exammcqs - 1. Sunk costs are costs that have proven to be...

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1. Sunk costs are costs that have proven to be unproductive. A) True B ) False 2. Consistency demands that a cost that is relevant in one decision be regarded as relevant in other decisions as well. A) True B) False 3. A future cost that does not vary among alternatives under consideration is irrelevant. A) True B) False 4. An existing asset should not be replaced until its original cost has been fully recovered. A) True B) False 5. In a special order situation, any fixed cost associated with the order would be irrelevant. A) True B) False 6. Eliminating nonproductive time is particularly important in a bottleneck operation.
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A) True B) False 7. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units. A) True B) False 8. As a general guide, it is profitable to continue processing joint products after the split-off point if their total revenues exceed the joint costs. A) True
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This note was uploaded on 09/30/2010 for the course COST 1122 taught by Professor Yousef during the Spring '10 term at European Business School London.

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exammcqs - 1. Sunk costs are costs that have proven to be...

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