In a Proposal to Increase the Production of Clock Radios,the

question 18

Multiple Choice

In a proposal to increase the production of clock radios,the sales managers of Rinaldo Electronics reported the total additional cost required to meet the increased production level.The increase in total cost is known as the

• A)opportunity cost.
• B)sunk cost.
• C)uncontrollable cost.
• D)differential cost.

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Definitions:

Implied Warranties

Unstated guarantees assumed in a sale, that a product will meet a minimum level of quality and functionality.

As Is

A term used to describe the sale of goods in their current condition, without any guarantee or warranty by the seller.

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Technical Manual

A document that provides instructions, specifications, and guidelines for the operation, maintenance, or understanding of a specific system or product.