For the relevant cost data in items (1 )-(7), indicate which of the following is the best classification.

(a) sunk cost

(f) semi-fixed cost

(b) incremental cost (g) controllable cost

(c) variable cost (h) non-controllable cost

(d) fixed cost (i) opportunity cost

(e) semi-variable cost;

(1) A company is considering selling an old machine. The machine has a book value of £20 000. In evaluating the decision to sell the machine, the £20 000 is a ....

(2) As an aJternative to the old machine, the company can rent a new one. II will cost £3000 a year. In analysing the cost-volume behaviour the rental is a .. ..

(3) To run the firm's machines, there are two alternative courses of action. One is to pay the operator a base salary plus a small amount per unit produced. This makes the total cost of the operators a ....

(4) As an alternative, the firm can pay the operators a flat salary.ll would then use one machine when volume is low, two when it expands, and three during peak periods. This means that the total operator cost would now be a ....

(5) The machine mentioned in (1) could be sold for £8000. If the firm considers retaining and using it, the £8000 is a ....

(6) If the firm wishes to use the machine any longer, it must be repaired. For the decision to retain the machine, the repair cost is a ....
(7) The machine is charged to the foreman of each department at a rate of £3000 a year. In evaluating the foreman, the charge is a