A decrease in the sales of a current project because of the launching of a new project is O A. irrelevant to the investment decision. OB. an overhead expense. OC. a sunk cost. D. cannibalization.

Q: Break-even analysis can help compare locations on the basis of factors that are expressed in terms…

A: Introduction: Break-even analysis stands as a critical tool for businesses assessing the financial…

Q: Discretionary costs: are variable in relation to the level of activity, such as the production or…

A: Cost means the amount incurred for running the business. Discretionary cost means the cost which is…

Q: n indirect cost

A: Option a, b, c and d are wrong because all of these statements are true.

Q: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

Q: Illustrate a break-even analysis scenario in the resturant industry. Discuss the relevant fixed…

A: A break-even point means where contribution margin of a company is equal to its Fixed Cost.

Q: Absorption costing is: A. a good way to value inventories for the balance sheet. B. used for…

A: Absorption costing is an accounting method used to calculate the manufacturing cost of a product. In…

Q: Just because a project's payback period is relatively long doesn't mean it is not profitable in the…

A: The payback period will reflect a period for recovering back initial investment and it will not…

Q: Which of the following best describes an "opportunity cost"?     Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Book value of old equipment is considered to be a Group of answer choices sunk cost. cost that can…

A: Book value of old equipment is considered to be a sunk cost..... Sunk costs are those costs which…

Q: Costs that can be eliminated in whole or in part if a particular business segment is discontinued…

A: Opportunity Cost: Opportunity cost refers to the foregone revenue that could have been generated…

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: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: Allocating common costs to individual segments does not make the allocated amount avoidable in the…

A: Allocating common costs to individual segments does not make the allocated amount avoidable in the…

Q: When risk of measurement error increases in using ABC Select one: O a. a & b O b. When costs are…

A: The question is multiple choice question and related to Activity Based Costing. Required  Choose the…

Q: Over-applied FOH

A: Applied fixed overhead is the product of actual units of activity and predetermined rate of fixed…

Q: Complete the following statements with one of the terms listed here: You may use a term more than…

A: The objective of the question is to fill in the blanks with the appropriate cost terms from the list…

Q: Which of the following statements about a sunk cost is false? Question 11Answer a. It is relevant to…

A: In cost accounting, several type of cost classifications are there. These are like direct costs,…

Q: If a firm has already paid an expense or is obligated to pay one in the future, regardless of…

A: In this question, we are required to determine the cost which has already been paid or will be paid…

Q: Does having a positive Contribution Margin always indicate that it is better to continue operations…

A: Contribution Margin is calculated by deduction variable costs from the sales revenue.

Q: Which of the following is not a factor to consider when deciding whether to accept a special order?…

A: It is the process of making decisions that involve the management of costs in order to achieve…

Q: Comparison between incremental revenues and incremental costs is the decision base for: a.…

A: Incremental revenue and incremental cost concept means where while taking any decision , we wants to…

Q: relevant cost analysis is: A. variable costs are always relevant. B. fixed costs are always…

A: When doing cost analysis for the company productions ,company is going to invest a lot of money so…

Q: Match each of the statements to the correct stem.  1. In a make or buy decision,…

A: Make or buy decision is a decision of cost benefit…

Q: The total fixed costs and  Operating Income were incorrect,

A: Solution: Total fixed costs = Fixed manufacturing costs + Fixed selling and administrative expenses

Q: The contribution income statement would require a firm to: Restructure its accounting system…

A: The objective of the question is to identify the requirements for a firm to prepare a contribution…

Q: Opportunity costs; a. Are treated as period costs under variable costing b. Have already been…

A: Introduction:- Opportunity cost means as follows under:-

Q: In Benefit/cost ratio analysis, if the salvage value is used to recover the first cost, it is being…

A: Salvage value is the book value of an asset after all the depreciation is completed.

Q: Replacement cost represents the current cost to replace the assets at the current level of service…

A: Replacement cost refers to the cost that would be incurred to replace an asset with an identical 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: Which of the following statements is most correct about step costs?  they have the same behaviour…

A: Marginal costing is the one by which the cost of additional unit production is calculated. Under…

Q: Problem 1-45 (Static) Cost Data for Managerial Purposes (LO 1-3) [The following information applies…

A: Answer:- Differential cost:- Cost accounting uses the financial concept of differential cost, often…

Q: A possible disadvantage of the ABC method is: (a) It does not allocate costs to the way production…

A: Definition:   Activity-based method (ABC): The costing method which allocates overheads to the…

Q: Why is it difficult to assign a dollar figure to an intangible cost? Can it ever be done? Explain…

A:

Q: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: Uncontrollable costs are the costs which be influenced by the action of a specified member of an…

A: In the process of manufacturing goods certain costs are incurred. The type of costs involved in the…

Q: Incremental costs are the ________ generated by a proposed alternative. A) additional revenues B)…

A: Incremental costs are the total additional costs incurred or the

Q: Why sunk cost should not be considered when evaluating a project?

A: Sunk cost is a cost that has incurred , and which cannot be recovered.

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: The life-cycle concept and WBS are important aids to O a. Reducing the cost and profit structure for…

A: Life cycle concept helps the entity in taking decision related to increase or decrease the price of…

Q: True or false A cost center manager does not have the ability to produce revenue.

A: Cost centre manager involves in the work of cost related to the product he has not an ability to…

Q: How weak reserch culture have an affect on Low potential investment? Explain in detail.

A: The low potential investment is also known as the low-risk investment. It refers to the investment…