84.Natalie purchased a concert ticket recently for $50. She is trying to decide whether to drive, take a taxi, or ride the public transit bus. The cost of driving to the concert is a sunk cost because Natalie purchased her car several years ago.
True False
85.Monica paid $12 for a music CD for which she later was offered $15. After that someone offered her $18 for the CD. If Monica keeps the CD, the amount of her opportunity cost is $33.
True False
86.Although opportunity costs are not recorded in the financial records, they nevertheless are useful for decision making.
True False
87.Qualitative information is only relevant for decision making if it can be quantified.
True False
88.For decision-making purposes, qualitative factors are relevant if they differ among the alternatives and relate to the future.
True False
89.A company that provides services (not goods) to its customers may incur costs that are appropriately classified as product-level costs.
True False
90.Direct labor is an example of a product-level cost.
True False
91.Costs that are not related to any specific product, batch, or unit of production are referred to as facility-level costs.
True False
92.The decision to accept a lower-than-normal selling price depends on the availability of excess capacity.
True False
93.The practice of buying goods and services from other companies is commonly known as vertical integration.
True False