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    Cost Concepts: Analyzing Costs in Managerial Accounting

    This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.


    Brenda has decided to go back to school and give up her $50,000/year job. What would be the cost concept that applies for the $50,000 Brenda must forgo to attend school?


    The difference between the costs of two alternatives in such that there is an increase in cost from one alternative to another, is known as:


    If Marginal Revenue is = to Marginal Cost, what has occurred?


    Company Z purchased a machine for $20,000 three years ago. The machine has proved to be unsuccessful for facilitating production and the Company will discontinue its use. This illustrates the cost concept of:


    When identifying relevant costs towards effective managerial decision making, what type of cost would be the most relevant?


    True or False: Marginal cost is the additional cost of producing one more unit whereas marginal revenue is the additional revenue obtained from selling one more unit.


    If MR>MC, what has occurred:


    Company A produces and sells a motorcycle and the following analysis shows: Fixed Costs: $1000, Total Revenue: $1700, Total Cost: $2,000, Marginal Revenue: $1700 and Marginal Cost: $1,000. What then is the Profit of producing one motorcycle?


    In regards to Question #8, what would be the Total Cost at 0 output?


    In regards to Question #8, Company A produces and sells one more bike: Total Revenue: $3300 and Total Costs: $2800. What would be the new Marginal Revenue and Marginal Cost (after analyzing Question #8)?