Costs incurred before the split-off point are
a. incremental costs.
b. relevant costs.
c. opportunity costs.
d. sunk costs.
Answer: Sunk cost
Joint cost before the Split-off Point is Consider as the Sunk cost . As this Costis irrelevant to the Decision. This Cost is not considered for the Pricing Decision Etc.
Costs incurred before the split-off point are a. incremental costs. b. relevant costs. c. opportunity costs....
Describe controllable, differential, relevant, sunk, opportunity, average, incremental, and standard costs. Describe controllable: Differential: Relevant: Sunk: Opportunity: Average: Incremental: Standard costs: At lease 300 words
A company manufactures three products using the same production process. The costs incurred up to the split-off point are $190,500. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number of Units Produced Selling Price at Split-Off Selling Price after...
Please answer all the question!!! 5. When will the elimination overall profit? a. When the b. When th of a product line have no effect on the company's avoidable fixed costs equal the product line's contribution margin e unavoidable fixed costs equal the product line's contribution margin d when there are no fixed costs incurred by the product line d. When the product line contribution margi n is negative 6. All of the following are relevant to the sell or...
In addition to the above (sunk costs, opportunity costs, incremental costs) many times there are qualitative factors that come into the decision making process. What nonquantitative aspects may also be relevant to the decision?
In a sell-or-process-further decision, the decision will be to sell at the split-off point if the incremental revenue from processing further is: a) less than the costs of the common process b) less than the incremental cost of processing c) more than the incremental cost of processing d) less than the revenue from selling at the split-off point
(4pts) 19) Differential analysis is an approach to the analysis of relevant costs that focuses on the costs that differ under alternative actions. True O False (4pts) 20) Which of the following statements about sunk costs is true? Sunk costs are the result of past decisions. Sunk costs are never relevant to decisions. Sunk costs do not vary between decision alternatives. All of the above. 21) The point in the production process where joint products become separately identifiable is (4pts)...
In a make-or-buy decision, which costs can be considered relevant? Group of answer choices Unavoidable variable costs, incremental fixed costs, and sunk costs Incremental variable costs, unavoidable fixed costs, and opportunity costs Incremental variable costs, incremental fixed costs, and sunk costs Incremental variable costs, incremental fixed costs, and opportunity costs
Part 1 When calculating incremental cash flows, we should exclude _____. A. sunk costs B. side effects C. opportunity costs D. taxes
How would you respond to this post? Sunk costs are costs that have been incurred previously and cannot be retrieved; therefore, they are irrelevant, meaning that the costs will be incurred regardless of the decision to be made (Douglas, 2012). Most fixed costs are sunk costs unless the asset can be sold to someone else; however, most times, the item is sold at a lower price than the purchase price or historical cost, which is known as the salvage value....
Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $47,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Product X Product Y Total Allocated joint processing costs $ 18,400 $ 28,600 $ 47,000 Sales value at split-off point...