Costs Influencing Decision-Making And Planning (9 Types) ~ BestNews

Wednesday, April 14, 2021

Costs Influencing Decision-Making And Planning (9 Types)

April 14, 2021 / by NewsGeek / with No comments /

Which one of the following is an example of a sunk cost? $1,500 of lost sales because an item was out of stock $1,200 paid to repair a machine last year $20,000 project that must be forfeited if another project is accepted $4,500 reduction in current shoe sales if a store commences selling sandalsOf that, they recouped $365 million from customers through a rate increase spread over six years. At the end of April, those costs will be fully recovered, meaning $27.346 million annually will be eliminated from rates. The utility recovered $141 million from the 2017 and 2018 storms.1) A cost that has been incurred in the past, cannot be recouped, and is not relevant to future decisions is termed a. a.replacement cost. b.sunk cost. c.period cost. d.differential cost. 2) The revenue that is forgone from an alternative use of an asset, such as cash, is called. a.differential profit. b.opportunity cost. c.sunk cost. dChapter 10 - Making Capital Investment Decisions 10-2 3. Which one of the following costs was incurred in the past and cannot be recouped? A. incremental B. side C. sunk D. opportunity E. erosion Refer to section 10.2 AACSB: N/A Bloom's: Knowledge Difficulty: Basic Learning Objective:10-1 Section: 10.2 Topic: Sunkcost 4.Accounting Financial And Managerial Accounting The following is a list of costs incurred by several manufacturing companies: a. Bonus for vice president of marketing b. Costs of operating a research laboratory c. Cost of unprocessed milk for a dairy d. Depreciation of factory equipment e.

Utilities have recouped more than $544M from CT storm

Theoretically, which of the following costs incurred in connection with a machine purchased for use in a company's manufacturing operations would be capitalized? Insurance on machine while in transit Testing and preparation of machine for use. A. YesIrrelevant Cost: An irrelevant cost is a managerial accounting term that represents a cost, either positive or negative, that does not relate to a situation requiring management's decision.Which of the following best describes an opportunity cost? a. Costs that were incurred in the past and cannot be changed. b. Benefits foregone by not choosing an alternative course of action.Under the accrual system, an expense is recognized once it is incurred. Key Terms. expense: In accounting, an expense is money spent or costs incurred in an businesses efforts to generate revenue; accrual basis accounting: A method of accounting where income is not recorded until earned and expenses are not recorded until incurred.

1) A cost that has been incurred in the past, cannot be

Which One Of The Following Costs Was Incurred In The Past And Cannot Be Recouped? A. Incremental B. Sunk C. Opportunity D. Erosion 21. To Compute The Operating Cash Flow For A Project, We Should NOT Consider Which One Of The Following? A. Taxes B. Variable Costs C. Fixed Costs D. Interest Expense E. Depreciation Tax ShieldWhich one of the following costs was incurred in the past and cannot be recouped a. Incremental b. Side c. Sunk d. Opportunity e. Erosion2. A cost incurred in the past that cannot be changed by any future action is: a) Opportunity cost b) Sunk cost c) Relevant cost d) Avoidable cost 3. ABC Company is trying to decided if they should replace an old machine with a new machine. The following data was analyzed. The purchase of a new machine would have what effect on net income?Fixed costs are sunk costs; that is, because they are in the past and cannot be altered, they should play no role in economic decisions about future production or pricing. Variable costs typically show diminishing marginal returns, so that the marginal cost of producing higher levels of output rises.Which one of the following is an example of a sunk cost? A) $1,500 of lost sales because an item was out of stock B) $1,200 paid to repair a machine last year C) $20,000 project that must be forfeited if another project is accepted D) $4,500 reduction in current shoe sales if a store commences selling sandals E) $1,800 increase in comic book sales if a store ceases selling puzzles

Theoretically, which of the following costs incurred in reference to a device bought to be used in an organization's production operations would be capitalized? Insurance on system while in transit Testing and preparation of machine for use

A. Yes Yes

B. Yes No

C. No Yes

D. No No