1.When deciding on whether to replace an old machine with a new one, the original cost of the old machine should be included in the analysis as it is a sunk cost.

True or False

2. Opportunity costs are

a. a fixed cost

b. a variable cost

c. recorded as overhead

d. not recorded in the accounting records

3. A cost object is anything for which cost data are desireddepartment, division, product, product line, customer, geographical territory.

True or False

4.

The salary of the vice president of finance would be considered a(n):

Multiple Choice

a. manufacturing cost.

b. product cost.

c. administrative cost.

d. selling expense.

5.

Property taxes and insurance on a factory building are examples of manufacturing overhead.

True or False