Practice - Other Special Types of Costs
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Practice Questions
Test your understanding with targeted questions
What is opportunity cost?
💡 Hint: Think about a situation where you choose between two job offers.
Define sunk cost.
💡 Hint: Relate it to past investments.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does opportunity cost refer to?
💡 Hint: Think about what you give up.
True or False: Sunk costs should influence future financial decisions.
💡 Hint: Consider a scenario where a company invests in additional training.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company has spent ₹100,000 on research and development for a product that was supposed to launch. However, market conditions have changed, and they foresee a better opportunity in an alternative product. How should they account for the ₹100,000 in their decision-making?
💡 Hint: Consider which costs are recoverable.
A bakery calculates that to produce an additional batch of cookies, this incurs ₹200 in raw materials and labor. However, signing a new contract for a larger order means increased production costs. Calculate the marginal cost and assess if production should be increased.
💡 Hint: Review pricing strategies and profit margins.
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