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 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1MC: ______ are the costs associated with not choosing the other alternative. A. Sunk costs B....

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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
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
Is there a difference between relevant costs and incremental costs? Explain. Identify at least two (2) irrelevant costs in a make vs buy decision
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.
Which of the following would not be relevant in a make or buy decision? Unavoidable variable costs Incremental fixed costs Avoidable fixed costs Opportunity 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 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? Group of answer choices A. avoidable costs B. unavoidable costs C. sunk costs D. differential costs
The benefit lost when choosing one option precludes receiving the benefits from an alternative option is called what? Opportunity costs Alternate costs O Variable costs O Relevant costs. Lost costs
Which of the following best defines the concept of a relevant cost? a. A past cost that is the same among alternatives. b. A past cost that differs among alternatives. c. A future cost that is the same among alternatives. d. A future cost that differs among alternatives. e. A cost that is based on past experience.
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
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.
Which of the following is an irrelevant cost? Group of answer choices An avoidable cost An incremental cost A sunk cost An opportunity cost