5. Costs that do not appear in conventional accounting records and do not require peso outlays but do involve a foregone opportunity by the entity whose costs are being measured are a. Sunk cost. b. Differential costs. c. Imputed costs. d. Prime costs.

Q: Give three examples of opportunity costs that typically are not recorded in accounting systems,…

A:

Q: What is the rationale behind treating period costs as current expenses? a. Period costs are…

A: Period cost is the cost which is incurred during an accounting year but not directly related to…

Q: Traditional accounting systems record only actual transac-tions. As a result, how can opportunity…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.…

A: “Since you have posted a question with multiple questions, we will solve the first three questions…

Q: Explain two reasons why uncontrollable costs are included in the income statement

A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…

Q: Which of the following is a basic limitation associated with ratio analysis

A: Ratio Analysis is very helpful in analyzing the balance sheet and income statement items and…

Q: Sunk costs are ignored in decision making but information about sunk costs are usually found in the…

A: Sunk Cost refers to the expenditure incurred by the organization where there is no scope to recover.…

Q: A profit center responsibility report​ ________.   A. is the same as a performance report   B.…

A: Profit center responsibility report is prepared using cost volume profit income statement format and…

Q: Listed are seven technical accounting terms introduced or emphasized. Sunk cost Opportunity cost…

A: An opportunity  cost is the next best alternative.  A sunk cost is cost incurred  in past and not…

Q: “Management accounting deals only with costs.” Do you agree? Explain?

A: Management accounting is wide field which encompasses cost computation, pricing analysis,process…

Q: 1 Consider the following statements concerning costs. When making​ decisions, relevant costs that…

A: Management accounting is the one widely used by the management and the accountants for various…

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: 1 The use of alternative accounting methods will result in a lower price-earnings ratio. A: True B:…

A: Accounting methods:- An accounting methods are defined as those methods, which can be adopted by…

Q: Question 1: Determine whether each of the following statement is true or false, and correct the…

A: The income statement is prepared to find the net income or losses incurred during the period.

Q: Some costs that possibly could be traced directly to cost objects are nonetheless classified as…

A: Indirect costs are those costs which cannot be traced or is not cost effective to trace the costs…

Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…

A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Q: How cost accounting is useful where financial accounting could not be answered. Give any exampleto…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: e joint cost allocated to Reta

A: Joint costs are the combined costs incurred in the production of two or more products produced…

Q: How you relate the differential cost with management of revenue in management accounting.

A: Management Accounting is a type of accounting which is used within the company for the purpose of…

Q: What are: Relevant / irrelevant / Differential Costs Relevant / irrelevant / Differential Revenues…

A: Relevant / Irrelevant / Differential Costs: Relevant Costs are the cost which are relevant in…

Q: A cost center is a responsibility center of a company which incurs losses. incurs costs and…

A: A cost center definitely incurs some cost to the business.

Q: i). How cost accounting is useful where financial accounting could not be answered. Give any example…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 10 - In cases where actual costs are applied, all of the expenses collected in the expense accounts;…

A: The correct option is  C) Inflation Adjustment Accounts

Q: Is Historical Cost measurement concept is still relevant to account for majority of the company…

A: Historical Cost Measurement Concept  In this concept valuation of the cost of an assets which are…

Q: /Identify the false statement: a. Cost accounting is based on data derived from financial accounts…

A: Cost and Management Accounting are maintained by the company in order to determine the cost of goods…

Q: Which of the following accounting principles or conventions is contradictory to the GAAP requirement…

A: As per matching principle of accounting, all expenses of a particular period are matched with the…

Q: Exercises Listed as follows are seven technical accounting terms introduced or emphasized in thie…

A: Costing: Costing is a technique to ascertain costs.

Q: The relevant range of activity is the activity level at which the company makes the highest amount…

A: Fixed cost does not change with the change in output whereas, variable cost changes with the change…

Q: Direct Expenses of a Department are ordinarily considered to be uncontrollable costs. TRUE FALSE

A: A department's direct expenses are usually considered as Controllable costs, since an entity would…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

Q: Practice 2:  a: Define standard costs. b: under what conditions should previously established…

A: a. Standard costs are the estimated costs of the items, processes, products which are used in the…

Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…

A: Cost accounting is a branch of accounting which focuses mainly on production related activities.

Q: To make predictions about costs and income, you must first classify costs by their behavior.…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: the economic order quantity model the return on capital that is forgotten when it is invested in…

A: In EOQ model that is economic order quantity we consider the lot  for which there will be overall…

Q: When preparing cost estimates for account analysis purposes, should the costs be extracted from the…

A: Cost estimation is essential for every company to help managers in relevant decision-making. Cost…

Q: Which of the following is/are not true about Committed costs   a. They are costs incurred to…

A: Committed cost means the cost which the company has already made the commitment and it is the…

Q: The terms period cost and product cost are sometimes used to describe certain items in financial…

A: The expenses specifically associated with the manufacture of a good or service planned for sale are…