Question : ( TCO 3 ) Dougherty Company employs 20 individuals . Eight employees are paid $ 12 per hour and the rest are salaried employees paid $ 3,000 a month . How would total costs of personnel be classified ? 2 . Question : ( TCO 3 ) For January , the cost components of a picture frame include $ 0.35 for the glass , $ 0.65 for the wooden frame , and $ 0.80 for assembly . The assembly desk and tools cost $ 400 . A total of 1,000 frames is expected to be produced in the coming year . What cost function best represents these costs ? 3 . Question : ( TCO 3 ) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data ? 4 . Question : ( TCO 3 ) Penny ' s TV and Appliance Store is a small company that has hired you to perform some management advisory services . The following information pertains to 20X8 operations : Sales ( 2,000 televisions ) $ 900,000 ; Cost of goods sold $ 400,000 ; Store manager ' s salary per year $ 70,000 ; Operating costs per year $ 157,000 ; Advertising and promotion per year $ 15,000 ; Commissions ( 4 % of sales ) $ 36,000 . What are the estimated total costs if Penny ' s expects to sell 3,000 units next year ? 5 . Question : ( TCO 4 ) The formal process of choosing among alternatives is known as a ( n ) 6 . Question : ( TCO 4 ) When using the five-step decision process , which one of the following steps should be done last ? 7 . Question : ( TCO 4 ) Sunk costs