ACC Chapter 24

Created by Alyamkina 

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differential revenue

The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is termed:

differential cost

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is termed:

sunk cost

A cost that will not be affected by later decisions is termed a(n):

opportunity cost

The amount of income that would result from an alternative use of cash is called:

differences between the alternatives being considered

Relevant revenues and costs focus on:

Yes

Should the special order be accepted?

when the variable costs are less than revenues

Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?

Net book value of obsolete equipment that has no market value

Which of the following would be considered a sunk cost?

the supplier will make a profit that would no longer belong to the business

All of the following should be considered in a make or buy decision except

if there is an increase to sales even if fixed expenses are also increased.

A business may decide to accept additional business at a special price for all of the following reasons except

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