Full costs of a product are the sum of ________. fixed costs and sunk costs in...

Question

Question

Full costs of a product are the sum of ________.

fixed costs and sunk costs in all the business functions of the value chain

all variable and fixed costs in all the business functions of the value chain

variable costs and sunk costs in all the business functions of the value chain

fixed costs, variable costs, and sunk costs in the value chain

Answer 1

Answer #1

Option 'B' is correct.

Full costs of a product are the sum of all variable and Fixed costs in all the business functions of the value chain.

Sunk costs are capital cost and so not to be included in Full cost.

Answer 2

Similar Homework Help Questions

Opportunity costs is defined as the contribution to operating income that is forgone by not using...

Opportunity costs is defined as the contribution to operating income that is forgone by not using a limited resource in its next-best alternative use the cost of manufacturing a one-time-only special order when a firm has excess capacity to make more products the sum of variable and fixed costs in all business functions of the value chain, such as manufacturing costs or marketing costs the sum of variable and fixed costs in a particular business function of the value chain,...
define in your own words the following: Fixed costs Variable costs Break-Even Volume Sunk Costs Direct...

define in your own words the following: Fixed costs Variable costs Break-Even Volume Sunk Costs Direct Variable Costs Indirect Variable Costs Unique Value Proposition What are the 5C’s of marketing. Explain their meaning in your own words List the 4P’s of marketing. Explain their meaning in your own words.
If a firm shuts down, it O will stop earning revenues and avoid sunk, fixed, and...

If a firm shuts down, it O will stop earning revenues and avoid sunk, fixed, and variable costs. will stop earning revenues but continues to pay variable costs. will continue earning revenues and avoid sunk costs and variable costs. will stop earning revenues but continues to pay fixed costs.

5. Which of the following statements is NOT correct? A) A sunk cost has been incurred...

5. Which of the following statements is NOT correct? A) A sunk cost has been incurred in the past and will not change regardless of what decisions are made. B) Sunk costs are NOT equivalent to fixed costs. C) Explicit costs are directly traceable to final product. For example, a feed store purchases com, soybean meal, vitamins, and antibiotics to produce a special animal feed. D) The cost of using buildings, equipment and laborare classified as explicit costs. E) Total...
Explain why classifying costs as fixed, variable, sunk or relevant is important for decision making. Highlight...

Explain why classifying costs as fixed, variable, sunk or relevant is important for decision making. Highlight any limitations to utilising these classifications for decision making. (6 marks)
How would you respond to this post? Sunk costs are costs that have been incurred previously...

How would you respond to this post? Sunk costs are costs that have been incurred previously and cannot be retrieved; therefore, they are irrelevant, meaning that the costs will be incurred regardless of the decision to be made (Douglas, 2012). Most fixed costs are sunk costs unless the asset can be sold to someone else; however, most times, the item is sold at a lower price than the purchase price or historical cost, which is known as the salvage value....

Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a...

Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a product in its present condition or to make it into a new product through additional processing? You may want to identify what a sunk cost is before addressing the question.
U opportunity COSES. O sunk costs. O relevant costs. O variable costs. 0 product costs. QUESTION...

U opportunity COSES. O sunk costs. O relevant costs. O variable costs. 0 product costs. QUESTION 9 Limited resources and limited demand for a product are generally referred to as O resources. O problems. O constraints. O optima. O contribution factors. QUESTION 10 The operations of Knickers Corporation are divided into the Pacers Division and the Bu
QUESTION 7 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O...

QUESTION 7 Future costs that differ across alternatives are O opportunity costs. O sunk costs. O relevant costs. O variable costs. O product costs. Click Save and Submit to save and submit. Click Save All Answers t

When a department or product line is dropped, the common fixed costs which had been allocated...

When a department or product line is dropped, the common fixed costs which had been allocated to that department: Multiple Choice O are eliminated O become variable costs O are allocated to the remaining departments or product lines. are allocated O O become sunk costs.