Makwa Industries Has Developed Two New Products but Has Only

question 17

Multiple Choice

Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products. The total overhead cost of $27 for Makwa's Product W is a

• A)Sunk cost.
• B)Opportunity cost.
• C)Variable cost.
• D)Mixed cost.

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