Question 1
Which of the following is included in product cost for pricing and product-mix decisions?
◦ marketing costs
◦ sunk costs
◦ opportunity costs
◦ cost of capital
Question 2
Which of the following might explain why one manager might assign certain costs to a cost object while a different manager might assign some different costs to that same cost object?
◦ one manager might classify one cost as direct while another might classify that same cost as indirect
◦ For financial statement purposes, one manager might include all the costs of the value chain while the other might only only include GAAP cost
◦ one manager might value an inventory item for the balance sheet as the sum of all the value chain costs while another manager might choose to only recognize variable costs as inventoribale costs for GAAP purposes.
◦ one manager might be pricing a cost object while the other manager might be seeking the inventoriable cost
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