When a Firm Has the Opportunity to Add a Project

question 47

Multiple Choice

When a firm has the opportunity to add a project that will utilize excess factory capacity (that is currently not being used) ,which costs should be used to help determine if the added project should be undertaken?

• A)allocated overhead costs
• B)sunk costs
• C)incremental costs
• D)average costs

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Definitions:

Parental Conflict

A theory in evolutionary biology that predicts conflict between the evolutionary interests of parents over the allocation of parental resources.

Genomic Imprinting

A genetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner.

Molecular Level

Analysis or consideration of structures and processes at the scale of molecules, often used in biochemistry and molecular biology.