Determine the term being defined or described by the followingstatement: Evaluation of how income will change based on analternative course of action.a. Differential analysisb. Opportunity costc. Product cost distortiond. Sunk coste. Theory of constraints

The term being defined or described by the statement "Evaluation of how income will change based on…

Answered: Determine the term being defined or…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 2RQ

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Explain how a contribution margin income statement can be used to determine profitability.
Explain the meaning of (A) differential revenue, (B) differential cost, and (C) differential profit (loss).
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
What is a direct cost? An indirect cost? Can the same cost be direct for one purpose and indirect for another? Give an example.
Describe the goal of the lower-of-cost-or-market concept.
Which of the following statement is correct for relevant costs? a.It is avoidable, future and measured by cash b.It is avoidable, future and measured by profit c.It is unavoidable, future and measured by cash d.It is unavoidable, future and measured by profit
Which of the following costs can be ignored when making a decision?a. Opportunity costs. b. Differential costs. c. Sunk costs. d. Relevant costs.
The distinction between indirect and direct costs depends on: Select one: a. whether a cost differs between alternatives. b. whether a cost is variable or fixed. c. whether a cost is a product or a period cost. d. whether a cost can be easily traced to the cost object under consideration. e. all of the above statements are correct.
Compare and contrast the historical cost accounting model with the fair value accounting model. What are the advantages and disadvantages of each?
In a decision analysis situation, which one of the following costs is generally not relevant to the decision?A. Differential cost.B. Avoidable cost.C. Incremental cost.D. Historical cost.
1. The amount by which an item contributes towards covering fixed cost and providing for profit is known as: a. gross profit b. gross margin c. contribution margin d. net margin
Define cost-volume-profit analysis?

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Determine the term being defined or described by the following statement: Evaluation of how income will change based on an alternative course of action. a. Differential analysis b. Opportunity cost c. Product cost distortion d. Sunk cost e. Theory of constraints