10 terms

ACC Chapter 24

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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