Question

Listed below are a number of statements concerning relevant versus irrelevant costs and benefits. Complete each statement by providing the missing term or phrase. (Terms may be used more than once as an answer.)
1. ________ are costs that have already been incurred and are not relevant to future decisions.
2. ________ is a measure of the limit placed on a specific resource.
3. A/an ________ is the forgone benefit of choosing to do one thing instead of another.
4. Monthly utility costs are estimated to be $1,200 regardless of the course of action; in this case, the utility costs are considered as a/an ________.
5. When a company has not yet reached the limit on its resources, it has ________.
6. A/an ________ the potential to influence a particular decision and will change depending on the alternative a manager selects.
7. At ________ opportunity costs become relevant and should be incorporated into the analysis.
8. When managers are forced to choose one alternative over another due to limited employee time and equipment availability, the business manager is facing a/an ________.

Answer 1

Answer:

1. Irrelevant costs

2. Capacity

3. Opportunity costs

4. Fixed Expense

5. Going concern

6. Coalition, Intuition, Escalation of Commitment, Risk Propensity, and Ethics

7. At full capacity

8. Differential Analysis