________ Cost Is Money Invested in the Past Which Is

question 14

Multiple Choice

________ cost is money invested in the past which is not retrievable in the present.

• A) Opportunity
• B) Sunk
• C) Product
• D) Explicit

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Definitions:

Variable Manufacturing Costs

Expenses that change in proportion to the manufacturing output, including costs related to direct labor, materials, and manufacturing overhead that fluctuates with production volume.

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from non-operating activities.

Fixed Overhead

The set costs associated with operating a business that does not change in relation to production volume, such as rent, salaries, and insurance.

Administrative Costs

Expenses related to the general operations of a business, such as office supplies, management salaries, and utilities, which do not directly tie to specific product or service production.