CHOOSE THE CORRECT ANSWER:

1.

What is the delivery cycle time for Garnick Corporation, based on the careful data it keeps about the average time to fill orders below?

Move time	Wait time	Queue time	Process time	Inspection time
5.5 hours	28.1 hours	10.6 hours	0.9 hours	0.2 hours

A. 17.2 hours

B. 1.1 hours

C. 44.2 hours

D. 45.3 hours

2. Which of the following costs should be included in the analysis when making a decision?

A. Sunk costs

B. Opportunity costs

C. Unavoidable costs

D. All of these costs should be included.

3. ABC Company produces 1,000 parts per year for use in its own finished goods. The variable product cost of these parts is $15 per unit. The fixed manufacturing overhead of the product is $12,000. If the part is purchased from the outside supplier, two thirds of the fixed manufacturing costs can be eliminated. The part can be purchased from an outside supplier at $20 per unit. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

A. $3,000 decrease

B. $1,000 increase

C. $5,000 increase

D. $3,000 increase