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 O 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

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 O 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

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Description: Relevant of differential cost analysistakes all variable and fixed costs into account to analyze decision alternativesconsiders only variable costs as they change with each decision alternativeconsiders the change in reported net income for each alt

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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Similar questions

Relevant Cost for non-routine decision making: Sell or Process Further How much is the incremental profit/loss for product A, B, C
Which of the following best describes an "opportunity cost"? Expected future costs that differ among alternatives None of the items in this list of answers. Costs that were incurred in the past and cannot be changed The distribution of all products to be sold
Which of the following best describes an "opportunity cost"? Group of answer choices costs that were incurred in the past and cannot be changed The distribution of all products to be sold Expected future costs that differs among alternatives Benefits foregone by not choosing an alternative course of action
THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity cost of captial b. Is calledbthe hold-up problem c. Are the sunk costs d. Is immaterial in managerial decisions
Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O a. Relevant costs. O b. Sunk costs. O c. Product costs. O d. Period costs. e. None of the answers are correct
What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs – Contribution Margin Variable Costs/ Profit Component None of the above Variable Costs + Profit Component/ Contribution Margin
In Classification Of Cost (Marginal costs) What Is A Business Situational Example of the ff: Marginal costs Differential/Incremental costs Opportunity costs Relevant cost Replacement cost Shutdown cost Capacity cost Sunk cost
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
On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
Costs that will differ between alternatives and influence the outcome of a decision are Select one: Oa. None of the answers are correct O b. Sunk costs. O c. Relevant costs. O d. Product costs. O e. Period costs.
Q: What is variable costing? How does it differ from absorpotion costing? Which can better be used to manipulate the income statement and how? Why would management do this?
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.