
Introduction:
Cost: The amount incurred by the business in return for something acquired or services utilized. It is the value of expenses recorded for the equipment, supplies, services labor, products etc.
Requirement 1:
To define:
The meaning of out of pocket cost.
Requirement 2:
To define:
The meaning of opportunity cost.
Opportunity Costs: The cost by which the benefit or profit is foregone or not availed by the company for having taken up the other alternatives refers to an opportunity costs. The cost is the difference between the
Opportunity costs are computed as it plays very important role in determining the capital structure of the company.
Requirement 3:
To state:
The incorporation of opportunity costs in accounting records of the company.

Want to see the full answer?
Check out a sample textbook solution
Chapter 25 Solutions
Fundamental Accounting Principles -Hardcover
- Please solve fast this questions of accountingarrow_forwardPlease given correct answer for General accounting question I need step by step explanationarrow_forwardThe following VAT balances were extracted from the subsidiary journals of Africa Traders as at 28 February 2024. R Cash receipts journal VAT input 556,50 VAT output 14 676,48 Cash payments journal VAT input 9 375,12 VAT output 642,78 Purchases journal VAT 6 260,40 Sales journal VAT 8 037,12 Purchases returns journal VAT 871,75 Sales returns journal VAT 902,32 On 1 February 2024, the VAT input account had a debit opening balance of R14 768 and the VAT output account had a credit opening balance of R14 154. Calculate the closing balance of the VAT output account as at 28 February 2024arrow_forward
- Round your answer to the nearest whole percent? Financial accountingarrow_forwardHi expert please given correct answer with accountingarrow_forwardVista Motors has a total asset turnover of 2.9, a net profit margin of 6.25 percent, and an equity multiplier of 3.6. Calculate Vista's return on equity (ROE) using the DuPont equation. (Financial accounting)arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





