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O a missed cost. D Question 8 0.5 pts hi: Which of the following represents a non-recurring cost? O Wages for a new employee. O The purchase of new equipment. O The lease of new equipment O The cost of power to run manufacturing equipment. DQuestion 9

Question 7 0.5 pts You decide to pay cash for a new car rather than finance the car at 1.9% for three years. If your savings account from which the cash is withdrawn pays 3.0%, the difference between what you could have earned in savings and what you would have paid in financing should be accounted for as O a sunk cost. O a variable cost O an opportunity cost O a missed cost. 0.5 pts

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Answer #1

a) "B"

Non recurring cost are those where the amount is not paid again and again. Purchasing a new machine need to paid only once. It is non reccuring.

b) "C"

It is called the opportunity cost. Which is also the next best option available.

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