replacement cost historical cost net realizable value present value

Q: Which of the following best defines the concept of a relevant cost? a. A past cost that is the same…

A: Relevant Cost: it is a cost which is used for taking decision  for the business management. this…

Q: a. what is the amount of prime costs? b. what is the amount of conversion costs?

A: Prime cost is the total direct cost incurred to manufacture a product or render a service typically…

Q: Difference between present value and net present value.

A: Present value (PV) is the current value of a future sum of money or stream of cash flow given a…

Q: the amount of relevant costs that would be saved

A: Relevant costs mean the variable costs that affect the decision making.

Q: Describe cost depletion and percentage depletion. Whyis the percentage depletion method permitted?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a…

A: Opportunity cost means the sacrifice of an individual when he chooses one option over another.

Q: In a replacement analysis, why are the previous costs irrelevant?

A: Replacement Analysis is a capital budgeting method that determines whether existing assets need to…

Q: What is meant by relevant costs and there use in making short-term decisions?

A: Cost refers to the amount of expenditure incurred by an individual or an entity in relation to goods…

Q: O e. Incremental cost.

A: Opportunity cost - Opportunity cost is benefit forgone for the next best alternative for an…

Q: d. Estimated selling price less estimated cost to complete c. Expected selling price less expected…

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

Q: What effect do minor deviations from the EOQ have on totalinventory cost?

A: Minor variations from the EOQ will not in general highly affect the total inventory cost except if…

Q: Define unavoidable fixed costs.

A: Unavoidable fixed costs are fixed costs which cannot be avoided by discontinuing a product line or…

Q: Net defined benefit asset results in Current service cost Interest expense Interest revenue

A: As per IAS 19 of IFRS mentions how the accounting should be done to employee benefit other than…

Q: inventories at the lower of cost and net realizable value? Added to cost

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

Q: Describe the following terms: (a) residual value, (b) guaranteed residual value, and (c) initial…

A: (a) Residual value: It is the projected ending value of an asset after its useful life or lease…

Q: Explain any one pros and cons of historical cost.

A: Historical cost is one of the four basic accounting principles. This method is used under Generally…

Q: Future costs that differ across alternatives are: a. Opportunity costsb. Sunk costsc. Relevant…

A: Costs are the amount of expenditures that are made in the business for the purpose of production or…

Q: A sunk cost can be described as which of the following?     A historical cost     Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: The term that refers to costs incurred in the past that are not relevant to a decision is: Oa…

A: Sunk cost is the cost which is incurred in tha past and is not relevant for the decision making.…

Q: Explain in detail and give example Historical Cost Principle

A: The historical cost theorem (as well called the expense theory of accounting) notes that a company's…

Q: The costs most relevant to be used in decision making are: a. sunk costs O b. current costs O c.…

A: Cost: It implies to the expense that is incurred on the manufacturing of a product or rendering…

Q: Why base measurement on historical costs?

A: Historical cost:   Historical cost explains that assets and liabilities appear in the financial…

Q: a) Why are neutral expenes eliminated and imputed cost added to derivee cost from expenses

A: Deriving the cost from expenses is necessary to ascertain the exact cost incurred and to…

Q: A price that can't be quickly or efficiently linked to a cost object is referred to as: Additional…

A: The costs that are easily tracked to the product are known as the traceable costs. Special domestic…

Q: Explain realizable value less than cost or cost greater than net realizable value?

A: Introduction:- The following formula used to calculate net realizable value as follows under:- Net…

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: effect of a change in useful life and residual value

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Explain Amortised cost and how to calculate it.

A: Amortized cost refers to the cost that helps to allocate the cost of financial/intangible assets…

Q: benefit

A: Introduction: Incremental Benefit – Cost Analysis: It is the method which helps to determine amount…

Q: example of lower of cost or net realizable value and explain

A: The concept of lower of cost or net realizable value says that the amount of inventory should be…

Q: Analysis of Financial Statements focus on the: Current cost Historical cost Future cost O None of…

A: The financial statements of the business includes the income statement and balance sheet of the…

Q: Define Historical cost principle.

A:

Q: Represent the cost that will be affected by the decision being considered. Margin of Safety…

A: The relevant and irrelevant costs are important in decision making.

Q: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.

Q: useful life

A: The useful life, carrying value and residual value are terms in accounting related to fixed assets.

Q: When does the system pay back for its cost? (Use cost benefit analysis.) Page 6 of 7

A: system cost  $         50,000 Discount Factor  11%   Year  Operational Cost Annual Benefit…

Q: Define relevant costs. Why are historical costs irrelevant?

A: Relevant cost: A cost that is specific in the managerial decision making are called relevant cost.…

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

A: Cost accounting is one of the branch of accounting. Under this, various type of costs are being…

Q: Explain cost benefit analysis in detail. Describe the evaluation techniques of cost benefits.

A: The company's motive will be to increase the profitability. The profitability of the company can be…