Direct Costs Future Worth & Fixed Costs Questions

:  Insert the LETTER of the word or phrase that correctly completes each statement.

• Annual Worth (AW)
• Arithmetic Gradient
• Breakeven Point
• Cash Flow
• Direct Costs
• Fixed Costs
• Future Worth (FW)
• Geometric Gradient
• Incremental Costs
• Index
• Indirect Costs
• Learning Curve 
• Opportunity Costs
• Present Worth (PW) 
• Sunk Costs
• Variable Costs
• __________________ are those associated with an operation that vary in total with the quantity of output or other measures of activity level. These costs may include the costs of material and labor used in a product or service.
• __________________ are those that have occurred in the past and have no relevance to estimates of future costs and revenues related to an alternative course of action. These costs are common to all alternatives, are not part of the future (prospective) cash flows, and can be disregarded in an engineering economic analysis.
• __________________ are incurred because of the use of limited resources, such that the opportunity to use those resources to monetary advantage in an alternative use is foregone. Often hidden or implied, they can be considered the cost of the best rejected opportunity.
• __________________ are the additional costs that result from increasing the output of a system by one (or more) units, and are often associated with “go-no go” decisions that involve a limited change in output or activity level.
• __________________ that are unaffected by changes in activity level over a feasible range of operations for the capacity or capability available. These costs typically include insurance and taxes on facilities, general management and administrative salaries, license fees, and interest costs on borrowed capital. 
• An economic __________________ for an operation occurs when total revenue equals total cost.
• A(n) __________________ is a dimensionless number that indicates how a cost or a price has changed with time with respect to a base year. They provide a convenient means for developing present and future cost and price estimates from historical data.
• A(n) __________________ is a mathematical model that explains the phenomenon of increased worker efficiency and improved organizational performance with repetitive production of a good or service; fundamentally, it is an estimating relationship.
• A(n) __________________ occurs when money is transferred from one organization or individual to another. It represents the economic effects of an alternative in terms of money spent and received.
• The __________________ method of evaluating an alternative is based on the concept of equivalent worth of all cash flows relative to some base or beginning point in time called the present.