Opportunity costs; a. Are treated as period costs under variable costing b. Have already been incurred as a result of past action c. Are benefits that have been obtained by following another course of action d. None of the above

Opportunity costs; a. Are treated as period costs under variable costing b. Have already been incurred as a result of past action c. Are benefits that have been obtained by following another course of action d. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: When reporting information, the most important thing to be considered is that, the cost. a. Should…

A: When reporting information, the most important thing to be considered is that, the cost Should be…

Q: ‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: solution : concept : variable costs variable costs are those costs which varies along…

Q: Is

Q: Understand costclassifications used in makingdecisions: differential costs,opportunity costs, and…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is…

A: Answer: True.

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: decision making purposes, relevant costs are: a. variable past costs b. all fixed and variable…

A: Relevant cost is the cost which are relevant in decision making process. Sunk cost are the cost…

Q: Sunk costs should always be included when considering the cost of an activity. True or false, and…

A: Sunk cost are those cost which are already incurred by the business , But business cannot recovered…

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost…

Q: 1.Discuss sunk costs and opportunity cost.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Any cost that is avoidable is relevant for decision purposes. O A. True O B. False

A: Relevant costs are those costs that are affected by the specific management decision being…

Q: In a replacement analysis, why are the previous costs irrelevant?

A: Replacement Analysis is a capital budgeting method that determines whether existing assets need to…

Q: he following statements are incorrect, except a. Cost is the same with expense. b. All costs…

A: Cost accounting refer to the outflow of money for the purpose of acquiring assets, producing goods…

Q: For a cost to be relevant to decision-making, it must be:

A: Relevant costs are critical in cost analysis and decision-making because they give a clear picture…

Q: 42) Relevant costs are all of the following except: A) Occur in the future B) Differ from among…

A: relevant costs are the avoidable costs that are incurred only when making specific business…

Q: Which of statements about the contribution income statement is correct? Group of answer choices

A: A contribution income statement is defined as the statement in which all the variable costs and all…

Q: 4. Please state the differences between relevant, opportunity and sunk costs.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Which of the following statements about a sunk cost is false? Question 11Answer a. It is relevant to…

A: In cost accounting, several type of cost classifications are there. These are like direct costs,…

Q: 3. Which of the following is correct regarding a relevant range? a Total variable costs will not…

A: A Relevant Range is the Range of Activity above which the Variable Cost Per Unit and The Total Fixed…

Q: The total cost of a cost object can only include the direct costs that are directly traced to that…

A: The total cost of a cost object includes both costs i.e costs that are directly traced and…

Q: Label each of the following statements as either true (“T”) or false (“F”). Relevant costs are also…

A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…

Q: ________ are the costs associated with not choosing the other alternative.A. Sunk costsB.…

A: The term "cost" alludes to the overall expense incurred in the production of goods and services as…

Q: Match the type of cost shown in the left column with the corresponding description shown in the…

A: 1. Irrelevant Cost - (B) A cost that is not pertinent to a particular decision. 2. Future Outlay…

Q: A sunk cost can be described as which of the following? A historical cost Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: What is meant by an activity base when dealing with variable costs? Give several examples of…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: From the cost behaviour perspective, there are two types of costs. One is fixed costs and other is…

Q: Uncontrollable costs are the costs which be influenced by the action of a specified member of an…

A: In the process of manufacturing goods certain costs are incurred. The type of costs involved in the…

Q: The benefit lost when choosing one option precludes receiving the benefits from an alternative…

A: Cost refers to the amount of resources (such as time, money, or effort) that are required to produce…

Q: Which type of cost occurs only with the implementation of a particular alternative? O unavoidable O…

A: Lets understand the basics.Unavoidable costs are cost which will not change due to any decision…

Q: Why opportunity cost is measured and relate with the evaluation of alternative, can it be an…

A: Cost or expenditure is the total amount spent by an individual, group and company to make a finished…

Q: A cost that has previously been incurred and can not be recovered by choosing one alternative over…

A: Allocated cost: Expenses assigned to a particular department or project.Fixed cost: Expenses that…

Q: A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional…

A: The costs that are easily tracked to the product are known as the traceable costs. Special domestic…

Q: Opportunity costs are always: Multiple Cholce sunk costs. relevant costs. fixed costs. varlable…

A: Sunk Cost - It is a cost that has already been spend , and cannot be recovered back . Relevant…

Q: What is the benefit of identifying avoidable and unavoidable cost in decision making process?

A: Avoidable costs: Avoidable Costs, as the name suggests, are the costs that can be avoided of the…

Q: Label each of the following statements as either true (“T”) or false (“F”). A sunk cost will change…

A: Sunk cost: It can be defined as an expense that has already been paid for and cannot be recovered in…

Q: What costs are assigned to a segment under the contribution approach? Distinguish between a…

A: The first part of the question is asking about the costs that are assigned to a segment under the…

Q: What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues…

A: Relevant / Irrelevant / Differential Costs: Relevant Costs are the cost which are relevant in…

Q: In incremental analysis, only relevant costs are considered when making a decision among…

A: These are the cost that are specific, pertinent and relevant to a particular decision making of…

Q: he term that refers to costs incurred in the past that are not relevant to a decision is: Multiple…

A: Cost Accounting is a process of identification, classification, measurement, and assignment of costs…

Question

Opportunity costs;
a. Are treated as period costs under variable costing
b. Have already been incurred as a result of past action
c. Are benefits that have been obtained by following another course of action
d. None of the above

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The cost of the difference between two different/alternative decisions or of change in output levels can be definded as a: O Fixed Cost O Differential Costs O Historical Cost O Deferred Cost
What are the advantages and disadvantages of ABC relative to the step-down method of cost allocation?
Classify the following fixed costs as normally being either committed or discretionary:c. Research.
Answer of both (i) and (ii)
What concept relates to the proportionate savings in costs gained when levels of production are increased: A) Accounting profit. B) Economies of scale. C) Marginal costs. D) Barriers to entry. E) Economic profit. The benefit lost when choosing one option precludes receiving the benefits from an alternative option was referred to as: A) Irrelevant costs. B) Lost costs. C) Alternative costs. D) Opportunity costs. E) Sunk costs.
example of lower of cost or net realizable value and explain
Which of the following statements regarding marginal costing is incorrect? Select one: O A. It is useful long-term planning technique OB. It assumes that fixed costs remain fixed over relevant activity ranges O C. It assumes that variable costs vary in proportion to activity O D. It assumes that costs can be classified as variable or fixed
Do you agree from the following statements- Explain in details with examples 1.Variable costs are controllable but fixed costs are not. 1.Sunk costs are irrelevant cost while making any decision.
43) Sunk costs are all of the following except: A) Unavoidable costs B) Avoidable costs C) Irrelevant costs D) Historical costs
A cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.
The following statements are correct excerpt? O A. Only avoidable costs are relevant for decision making B. Incremental cost may include both variable and fixed costs OC. All irrelevant costs are sunk costs OD. All direct or indirect cost depends on the cost object