Which of the Following Is an Example of 'Optional Prices

question 49

Multiple Choice

Which of the following is an example of 'optional prices'? 

• A) Prices for current deliveries of spare parts and services after delivery of the work 
• B) Prices for future deliveries of spare parts and services before delivery of the work. 
• C) Prices for future deliveries of spare parts and services after delivery of the work. 
• D) Prices for current deliveries of spare parts and services before delivery of the work.

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Definitions:

Direct Manufacturing Cost

These are costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Differential Costs

The difference in total cost that will result from selecting one choice over another.

Sunk Costs

Sunk costs refer to money already spent and permanently lost, which cannot be recovered and should not influence future financial decisions.

Opportunity Costs

A rephrased definition: The potential gains or benefits that are lost when choosing one alternative over another in decision-making.