When Making a Decision to Buy a New Computer, the Irrelevant

question 155

Multiple Choice

When making a decision to buy a new computer, the irrelevant costs are the

• A) differential costs.
• B) relevant costs.
• C) qualitative characteristics.
• D) sunk costs.

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Definitions:

Forming

A manufacturing process used to shape metal or other materials using a combination of pressure and tooling.

Assembly

The process of putting together various components to create a finished product.

Predetermined Overhead Rates

The estimated overhead cost per unit of the allocation base, calculated at the beginning of the period.

Machine-Hours

The total amount of time machines are operated to produce goods.