G & L Plastic Molders spent $1,200 last week repairing a machine. This week the company is trying to decide if the machine

G & L Plastic Molders spent $1,200 last week repairing a machine. This week the company is trying to decide if the machine could be better utilized if they assigned it a proposed project. When analyzing the proposed project, the $1,200 should be treated as which type of cost?    A.  opportunity B.  fixed C.  incremental D.  erosion E.  sunk Refer to section 10.2

15.

Which one of the following best illustrates erosion as it relates to a hot dog stand located on the beach?    A.  providing both ketchup and mustard for its customer's use B.  repairing the roof of the hot dog stand because of water damage C.  selling fewer hot dogs because hamburgers were added to the menu D.  offering French fries but not onion rings E.  losing sales due to bad weather Refer to section 10.2

16.

Which of the following should be included in the analysis of a new product? I. money already spent for research and development of the new product II. reduction in sales for a current product once the new product is introduced III. increase in accounts receivable needed to finance sales of the new product IV. market value of a machine owned by the firm which will be used to produce the new product    A.  I and III only B.  II and IV only C.  I, II, and III only D.  II, III, and IV only E.  I, II, III, and IV Refer to section 10.2