A Cost That Will Not Be Affected by Later Decisions

question 78

Multiple Choice

A cost that will not be affected by later decisions is termed:

• A)historical cost.
• B)differential cost.
• C)sunk cost.
• D)replacement cost.

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Definitions:

Modular Design

refers to creating complex products from interchangeable parts or modules, allowing for easier assembly, repair, and customization.

Mass Customization

A manufacturing approach that allows for the production of personalized goods at mass production prices by leveraging flexible processes.

Postponement Strategy

A supply chain strategy that delays the final assembly or customization of a product until the latest possible time to reduce inventory costs and respond to specific customer demands.

Time-function Mapping

A process analysis tool that visually represents a process's steps over time, helping identify delays, redundancies, and opportunities for improvement.