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55 a sunk cost is a relevant cost in a decision making 56 quantitative factors such 4301362


55) A sunk cost is a relevant cost in a decision making.


56) Quantitative factors, such as direct material costs, are outcomes that are measured in numerical terms.

57) Qualitative factors are outcomes that can be easily measured in numerical terms, such as the costs of direct labor.


58) Business function costs are the sum of all variable and fixed costs in all business functions of the value chain.


59) Qualitative factors, as well as relevant revenues and relevant costs need to be considered when selecting among alternatives.


60) Past costs are also called sunk costs because they are unavoidable and cannot be changed no matter what action is taken.


61) Full costs of a product include variable and fixed costs in a particular business function in the value



62) For one-time-only special orders, fixed costs may be relevant but NOT variable costs.

63) In the decision making of a one-time-only special order, it is assumed that accepting the special order is not expected to affect the selling price to other customers.


64) Bid prices and costs that are relevant for regular orders are the same costs that are relevant for one-time-only special orders.




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