The following terms are used to describe various economic characteristics of costs: Opportunity Cost
Out-of-pocket cost
Sunk cost
Differential cost
Marginal cost
Average cost
Required: Choose one of the preceding terms to characterize each of the amounts described below.
Each term may only be used once.
A. The cost of building an automated assembly line in a factory is $5,000,000; a manually operated assembly line would cost $3,000,000. What economic term is used to describe difference between these two amounts.
B. The management of an office building uses 2,000 square feet of space in the building for its headquarters. This space could be rented for $40,000. What economic term describes this lost rental revenue?
C. Inventory that was purchased 4 years ago and is considered obsolete.
D. The cost of adding 1 extra child to a private school.

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Susan is a 5th grade teacher and loves getting up every day and going to work to teach her students. this is an example of a. extrinsic value b. interests c. intrinsic value d. external value

Vincent is interested in increasing his earning potential upon completing his internship at a major accounting firm. which option can immediately boost his career in the intended direction? b. complete a certification from a professional organization c. complete a new four-year undergraduate program in a related field d. complete a two-year associate degree in a related field e. complete an online course in accounting