Knowledge Check $01$

A company with various segments $($referred to as "divisions"$)$ is considering whether to drop its Orange County division. For each of the costs described below, indicate whether the cost is avoidable or unavoidable by choosing the related drop$-$down menu item.

$\backslash$table$[[\backslash$table$[[1.$ Wages paid to the Orange County division employees who work directly for this$],[$division and will be discharged if the division is dropped.$]],$Avoidable$],[\backslash$table$[[2.$ General administrative expenses allocated to the Orange County division on the$],[$basis of sales dollars.$]],$Unavoidable$],[\backslash$table$[[3.$ Depreciation expense on previously purchased machinery that is used in the Orange$],[$County division; the machinery will have no other use or resale value if the division is$],[$dropped$.]],$Unavoidable$],[4.$ Rent paid for the building that houses only the Orange County division.,Avoidable$],[\backslash$table$[[5.$ The amount of rent paid to lease a private jet for use by the company's management$],[$that is allocated to the Orange County division.$]],$Avoidable,$]]$