Listed are seven technical accounting terms introduced or emphasized. 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 statement, indicate the accounting term or terms described, or answer “none" if the statement does not correctly describe any of these terms. Examination of differences between costs to be incurred and revenue to be earned under different courses of a. 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 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.

Listed are seven technical accounting terms introduced or emphasized. 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 statement, indicate the accounting term or terms described, or answer “none" if the statement does not correctly describe any of these terms. Examination of differences between costs to be incurred and revenue to be earned under different courses of a. 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 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.

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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