A cost that is shared by all of the available options or all divisions. Because it is the same for all options, it is not relevant and should not be taken into account in making a decision between any two different options.

A cost that is shared by all of the available options or all divisions. Because it is the same for all options, it is not relevant and should not be taken into account in making a decision between any two different options.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

A cost that is shared by all of the available options or all divisions. Because it is the same for all options, it is not relevant and should not be taken into account in
making a decision between any two different options.
Select the correct response:
Committed Cost
Fixed Cost
Imputed Cost
Opportunity Cost
Common Cost

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