CUSECO FINAL EXAM LATEST 2025 UPDATE WITH COMPLETE QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS 100%GUARANTEED PASS!!!
-unavoidable
avoidable fixed costs -<<answer>> -fixed expenses that are incurred only if the decision is implemented
-almost always relevant costs because they change if the decision is implemented
unavoidable fixed costs -<<answer>> -fixed costs that remain unchanged if the decision is implemented
-sunk costs and NEVER relevant to decisions
unavoidable fixed costs are... -<<answer>> sunk costs
never relevant
prime cost -<<answer>> direct material and direct labor together
-the cost that is directly attributable to products
manufacturing overhead -<<answer>> -the cost of indirect labor, indirect material, factory operating
cost used for production of inventory
marginal cost -<<answer>> the additional cost of producing an additional unit of output
-difficult to measure with certainty
-as workers specialize, marginal productivity increases
most important concept of economics -<<answer>> opportunity cost
, opportunity cost -<<answer>> The highest valued alternative foregone.
-for any action one takes, he foregoes alternatives
-to justify, the decision must be valued higher than the alternatives foregone
-not just monetary, but everything given up (time)
criteria for opportunity cost -<<answer>> 1. should be distinguished from payments
2. not be confused with past expenses
3. play an important role in capital budgeting decisions
-never relevant to any decision
a sunk cost CANNOT -<<answer>> be changed by the decision under consideration
variable cost -<<answer>> Direct materials, direct labor, and variable overhead are all included in
product costs, but fixed overhead is treated as a fixed expense.
-This allows for managers to overproduce since the extra units no longer absorb a portion of the fixed
overhead.
-expenses that vary with production
-usually relevant
variable costs are usually relevant because -<<answer>> majority of decisions entail changes in
production or the unit costs associated
are variable costs ever sunk costs? -<<answer>> no, change with level of production
(relevant)
fixed costs -<<answer>> -expenses that do no vary with output
ex: $1000 monthly rent
CORRECTLY WELL DEFINED ANSWERS 100%GUARANTEED PASS!!!
-unavoidable
avoidable fixed costs -<<answer>> -fixed expenses that are incurred only if the decision is implemented
-almost always relevant costs because they change if the decision is implemented
unavoidable fixed costs -<<answer>> -fixed costs that remain unchanged if the decision is implemented
-sunk costs and NEVER relevant to decisions
unavoidable fixed costs are... -<<answer>> sunk costs
never relevant
prime cost -<<answer>> direct material and direct labor together
-the cost that is directly attributable to products
manufacturing overhead -<<answer>> -the cost of indirect labor, indirect material, factory operating
cost used for production of inventory
marginal cost -<<answer>> the additional cost of producing an additional unit of output
-difficult to measure with certainty
-as workers specialize, marginal productivity increases
most important concept of economics -<<answer>> opportunity cost
, opportunity cost -<<answer>> The highest valued alternative foregone.
-for any action one takes, he foregoes alternatives
-to justify, the decision must be valued higher than the alternatives foregone
-not just monetary, but everything given up (time)
criteria for opportunity cost -<<answer>> 1. should be distinguished from payments
2. not be confused with past expenses
3. play an important role in capital budgeting decisions
-never relevant to any decision
a sunk cost CANNOT -<<answer>> be changed by the decision under consideration
variable cost -<<answer>> Direct materials, direct labor, and variable overhead are all included in
product costs, but fixed overhead is treated as a fixed expense.
-This allows for managers to overproduce since the extra units no longer absorb a portion of the fixed
overhead.
-expenses that vary with production
-usually relevant
variable costs are usually relevant because -<<answer>> majority of decisions entail changes in
production or the unit costs associated
are variable costs ever sunk costs? -<<answer>> no, change with level of production
(relevant)
fixed costs -<<answer>> -expenses that do no vary with output
ex: $1000 monthly rent
