What concept relates to the proportionate savings in costs gained when levelsof 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 benefitsfrom an alternative option was referred to as:A) Irrelevant costs.B) Lost costs.C) Alternative costs.D) Opportunity costs.E) Sunk costs.

Lets understand the meaning of all the terms given in the question. Accounting profit is a terms…

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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2MC: Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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.

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Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on future events) and should be excluded in decision-making? A. avoidable costs B. unavoidable costs C. sunk costs D. differential 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 potential benefit of one alternative that is lost by choosing another is known as a. An alternative cost. d. An opportunity cost. b. A sunk cost. e. An out-of-pocket cost. c. A differential cost.
Costs that will differ between alternatives and influence the outcome of a decision are Select one: O a. None of the answers are correct O b. Sunk costs. O c. Product costs. O d. Period costs. e. Relevant costs.
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.
i.“Differential Costs” are considered as relevant, where as “sunk Cost ” is considered asirrelevant for decision making purposes. Explain ii. Why opportunity cost is measured and relate with the evaluation of alternative, can it bean opportunity loss? iii. Which one either spoiled goods or defective goods are less economical for the companyand why?
Which of the following statement is correct for relevant costs? a.It is avoidable, future and measured by cash b.It is avoidable, future and measured by profit c.It is unavoidable, future and measured by cash d.It is unavoidable, future and measured by profit
An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized type of variable cost. d. a specialized type of fixed cost.
Which of the following would be considered as a limiting factor to maximize the profit? O a. Book value O b. Fixed cost Oc. Contribution d. Sales
Which of the following costs can be ignored when making a decision?a. Opportunity costs. b. Differential costs. c. Sunk costs. d. Relevant costs.
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
Which of the following statements is false? (You may select more than one answer.)a. Under some circumstances, a sunk cost may be a relevant cost.b. Future costs that do not differ between alternatives are irrelevant.c. The same cost may be relevant or irrelevant depending on the decision context.d. Only variable costs are relevant costs. Fixed costs cannot be relevant costs.