Exercises Listed as follows are seven technical accounting terms introduced or emphasized in thie Sunk cost Opportunity cost Out-of-pocket cost Joint products Incremental analysis Split-off point Relevant information Each of the following statements may (or may not) describe one of these terms. For each stateme indicate the accounting term or terms described, or answer "none" if the statement does not e rectly describe any of these terms. Examination of differences between costs to be incurred and revenue to be earned under a а. ferent courses of action. b. A cost incurred in the past that cannot be changed as a result of future actions. c. Costs and revenue that are expected to vary, depending on the course of action decided or d. The benefit foregone by not pursuing an alternative course of action. e. Products made from common raw materials and shared production processes. f. A cost yet to be incurred that will require future payment and may vary among alterr courses of action. - The point at which manufacturing costs are split equally between ending inventory and c goods sold.
Exercises Listed as follows are seven technical accounting terms introduced or emphasized in thie Sunk cost Opportunity cost Out-of-pocket cost Joint products Incremental analysis Split-off point Relevant information Each of the following statements may (or may not) describe one of these terms. For each stateme indicate the accounting term or terms described, or answer "none" if the statement does not e rectly describe any of these terms. Examination of differences between costs to be incurred and revenue to be earned under a а. ferent courses of action. b. A cost incurred in the past that cannot be changed as a result of future actions. c. Costs and revenue that are expected to vary, depending on the course of action decided or d. The benefit foregone by not pursuing an alternative course of action. e. Products made from common raw materials and shared production processes. f. A cost yet to be incurred that will require future payment and may vary among alterr courses of action. - The point at which manufacturing costs are split equally between ending inventory and c goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
21.1
Transcribed Image Text:**Educational Exercise on Accounting Terms**
Listed below are seven technical accounting terms introduced or emphasized in this chapter:
- Sunk cost
- Opportunity cost
- Split-off point
- Joint products
- Relevant information
- Incremental analysis
**Instructions:**
Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the accounting term described, or answer "none" if the statement does not correctly describe any of these terms.
a. Examination of differences between costs to be incurred and revenue to be earned under different courses of action.
b. A cost incurred in the past that cannot be changed as a result of future actions.
c. Cost and revenue that are expected to vary, depending on the course of action decided on.
d. The benefit foregone by not pursuing an alternative course of action.
e. Products made from common raw materials and shared production processes.
f. A cost yet to be incurred that will require future payment and may vary among alternative courses of action.
g. The point at which manufacturing costs are split equally between ending inventory and cost of goods sold.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education