Identify each of the following cash items whether it is fixed cost, variable cost, sunk cost, or opportunity cost. (a) (i) David decides to quit working and got to school to get further training. (ii) RM 4,000 monthly rental cost for a site office and the equipments. A company spends RM 20,000 to train its sales staff in the use of new tablets computers, which they will use to take customer orders. (iii)

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
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(a)
Identify each of the following cash items whether it is fixed cost, variable cost, sunk
cost, or opportunity cost.
(i)
David decides to quit working and got to school to get further training.
(ii)
RM 4,000 monthly rental cost for a site office and the equipments.
(iii)
A company spends RM 20,000 to train its sales staff in the use of new tablets
computers, which they will use to take customer orders.
(iv) Delivery charged incurred by McDonalds for their food delivery to
customers.
(v)
Tesco spent about RM 500 on plastic wrap to pack 2,000 sandwiches.
Transcribed Image Text:(a) Identify each of the following cash items whether it is fixed cost, variable cost, sunk cost, or opportunity cost. (i) David decides to quit working and got to school to get further training. (ii) RM 4,000 monthly rental cost for a site office and the equipments. (iii) A company spends RM 20,000 to train its sales staff in the use of new tablets computers, which they will use to take customer orders. (iv) Delivery charged incurred by McDonalds for their food delivery to customers. (v) Tesco spent about RM 500 on plastic wrap to pack 2,000 sandwiches.
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