M4 Marginal Analysis

Question 1

What type of costs are R&D costs?

Answer 1

SUNK

Question 2

For special orders (and make vs buy), in determining relevant costs, what costs to consider if at full capacity

Answer 2

Variable AND opportunity costs

*if excess capacity you don’t have to include opportunity costs

Question 3

What’s included in prime costs?

Answer 3

DM and DL