Answered: The amount of increase or decrease in…

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative O discretionary cost O differential cost O period cost O product cost

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: RUE OR FALSE Net income under GAAP highlights differences between variable and fixed costs.

A: Answer: Net income under GAAP highlights differences between variable and fixed costs. The…

Q: Is

Q: how does the contribution margin pricing method differ from ratio pricing method?

A: The question is based on the concept of pricing policy and methods. The product's price can be…

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: Which of the following is not included in the calculation of the lifecycle cost of a product?…

A: Cost of disposal refers to the additional expense incurred as a result of the disposal of an asset,…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

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: Which is more consistent with cost-volume-profit analysis, variable costing or absorption costing?…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Marginal Costing

A: Option a is wrong because marginal costing is not a technique of cost reduction. Cost reduction…

Q: Why do managers consider Direct Coasts to be more accurate than Indirect Costs? How do managers…

A: Direct costs are the costs which are directly identifiable in the manufacturing process. Indirect…

Q: What is a product cost? What is a period cost? What is the difference and why is it important to…

A: Product cost refers to all costs directly pertaining to the production of a product. While, Period…

Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?

A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…

Q: Which of the following best describes an "opportunity cost"? Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Which method results in a more realistic amount for income because it matches the most current costs…

A: The current costs is based on the purchasing of the latest products which means the having book…

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: In preparing a relevant cost analysis when operating a full capacity, the analysis should consider…

A: Relevant cost analysis is use to choose one alternative out of available alternatives, this is…

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: What is the difference between a direct cost and an opportunity cost. Can you show the difference…

A: Direct cost and opportunity cost are two types of costs used in cost accounting.

Q: What effect do minor deviations from the EOQ have on totalinventory cost?

A: Minor variations from the EOQ will not in general highly affect the total inventory cost except if…

Q: costs that change proportionately according to the changes in the cost driver.......

A: variable costs are the costs that change according to the changes in the cost drivers or changes…

Q: Which of the following would be considered as a limiting factor to maximize the profit? O a. Book…

A: Limiting factors can be defined as the constraints in availability of production resources in order…

Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…

A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…

Q: Opportunity costs; a. Are treated as period costs under variable costing b. Have already been…

A: Introduction:- Opportunity cost means as follows under:-

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost

A: Cost is the monetary value of expenditures for raw materials, technology, supplies, services, labor,…

Q: When will NOI under the variable costing method show higher income than under the absorption costing

A: Net Operating Income: It is a calculation used to assess the profitability of the business.

Q: What is the relevant range? How does fixed costs and variable costs behave outside the relevant…

A: Relevant range refers to the level of the activity which represents the maximum and minimum limits…

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: The term "relevant range" means the range over which: a particular cost formula is valid. production…

A: Lets understand the basics.Cost accounting is that branch of accounting in which all costs incurred…

Q: n a decision analysis situation, which one of the following costs is generally not relevant to the…

A: Decision making is the process used to choose one of the various available alternatives. Examples of…

Q: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: Which one of the following is an example for variable cost? O a. Salary with commission O b.…

A: Variable cost is a cost that keeps on changing with the changes in the level of activity.

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 changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: Direct costs can be referred to as fixed costs. True or False?

A: Cost are divided into two parts which are, (1) Direct cost (2) Indirect cost Direct costs are the…

Question

100%

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Relevant of differential cost analysis takes all variable and fixed costs into account to analyze decision alternatives considers only variable costs as they change with each decision alternative considers the change in reported net income for each alternative to arrive at the optimum decision for the company considers all variable and fixed costs as they change with each decision alternatives The term that refers to costs incurred in the past that are not relevant to a future decision is full absorption cost sunk cost incurred marginal cost under allocated indirect cost
What is the difference between fixed costs and variable costs?
variable costs change in direct proportion to a change in the activity level. True or False?
What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues Avoidable / unavoidable costs Sunk costs
In incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.
The term that refers to costs incurred in the past that are not relevant to a decision is: Multiple Choice indirect cost. sunk cost. period cost. marginal cost.
in which cases is it preferable to prepare the income statement based on marginal costing? Justify your opinion.
Which of the following is a correct definition of the margin of safety? The excess of contribution margin over fixed costs The excess of gross margin over target income 0 The excess of sales revenue over the breakeven point The excess of ner income over all costs (both variable and fixed
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
In incremental analysis, the only costs to be considered are O relevant costs. sunk costs. O variable costs. O manufacturing costs.
The cost that is used for the benefit of many cost objects and cannot be easily related to any specific cost object: Select one: O a. Fixed cost O b. Indirect cost O c. Direct cost d. Variable cost
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.