Read the following paragraph and choose the most appropriate answer from the fol
ID: 1103491 • Letter: R
Question
Read the following paragraph and choose the most appropriate answer from the following list Differential Cost Fixed Cost Manufacturing Overhead Cost,Opportunity Cost Direct Cost,Selling Cost Sunk Cost Variable Cost Ahmed is considering quitting his job in order to produce and market a new product on a large-scale basis Ahmed will rent a small factory for for production purposes Utilities will cost 500dhs per month The course cost 800dhs material cost per unit will be 20dhs Ahmed has taken an industrial design course to help prepare for this venture Ahmed will rent production equipment at a monthly cost of 3,000dhs He estimates the and the labor cost will be12dhs He will hire workers and spend his time promoting the product To do this he willquit hi job which pays 25,000dhs per monthj Queston 7 of 28 1 9 2Explanation / Answer
1) fixed cost.
2) sunk cost of design
3) fixed cost
4 ) variable cost
5 variable cost
6) opportunity cost.
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