Practice Quiz 15A
Complete the following quiz for the lesson: Non-Routine Business Decisions
Relevant costs in non-routine decision making are
future costs that are common under decision alternatives.
any unrecoverable past cost.
joint costs under decision alternatives.
future costs that vary among decision alternatives.
future costs that are unavoidable under decision alternatives.
Sunk costs in decision alternatives are always
NONE of these options.
In a decision on whether to buy a new car or maintain an existing one, the resale value of the existing car is a(n)
NONE of these options
A company has an noncancellable lease on equipment with three years remaining on the original lease at a cost of $1,000 per year. The equipment cannot be subleased or sold and has no anticipated residual value at the end of the lease. Given these circumstances, the future lease payments under any decision which contemplates the purchase of newer replacement equipment should be characterized as a(an)
a savings of $15,000.
a savings of $12,000.
None of these options
a loss of $15,000.
a loss of $12,000.
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