Chapter 2—Cost Terminology and Cost Behaviors MULTIPLE CHOICE 1. The term "relevant range" as used in cost accounting means the range over which a. | costs may fluctuate. | b. | cost relationships are valid. | c. | production may vary. | d. | relevant costs are incurred. | ANS: B PTS: 1 DIF: Easy OBJ: 2-2 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement‚ Reporting 2. Which of the following defines variable cost behavior
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Q1: explicit costs and implicit costs concepts Explicit Cost Explicit cost is defined as the direct payment which is supposed to be made to others while running business. This includes the wages‚ rents or materials which are due in the contract. The explicit cost is the expense done in business which can easily be identified and accounted for in the business at any stage. The explicit cost represents the out flows of cash in clear and obvious terms. When any out flow of credit occurs in a business
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B) resources are scarce. C) resources are infinite D) with good planning‚ trade-offs can be avoided. 2. The best measure of the opportunity cost of any choice is: A) the monetary cost of that choice. B) whatever you have given up to make that choice‚ even if no monetary costs are involved. C) the cost associated with not taking full advantage of the opportunity offered by that choice. D) your hourly wage. 3. A busy professor can’t decide whether to stay in his office to grade papers for
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• Waste produced with nowhere to put it (no land) • Earthquakes can cause damage • Contamination of the environment POSITIVE IMPACTS: Nuclear power plants don’t pollute the air such as the greenhouse gases. Nuclear power plants provide low-cost and they are cheap and provide a stable electric power system. It can be used to run large vehicles. It could be used in the x-rays in hospitals and medical centres. NEGATIVE IMPACTS: There were Nuclear power plants accidents since 1952. One
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Current Issues with Health Care Costs Truly Benton Atlanta‚ Georgia Current Issues with Health Care Costs Health care spending in the U.S. continues to soar to unsustainable levels. There are many strategies and views on ways to contain health care costs‚ while improving the efficiency and quality of health care. Hospital services‚ physician services‚ prescription drugs and technology/medical innovation and the aging population are areas that drive the high cost of health care creating an
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law. What followed this act was a series of almost disaster’s effects. Prohibition was a major failure in the U.S. It was made to ensure temperance and decrease alcohol abuse. When in reality it exacerbated the problem. After Prohibition more people abused alcohol as illegal than when it was legal. It was also the cause of a major crime increase in the states. Intern‚ Prohibition was not only a failure‚ but a possible cause of America’s demise. Luckily‚ it was repealed. Economically‚ America started
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The Cost of Absenteeism Any company’s successful operation depends in large part on the attendance of its employees. Unnecessary or unexcused absences affect company operations. Some absences are unavoidable. Others are worth taking steps to control. Absenteeism costs companies more money every year. Can you figure out what absenteeism costs your company in any given month? Can you multiply that by 12 to see what it costs in a year? Remember‚ this isn’t taking into account the cost of replacing
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Chapter 4: Costs and Cost Minimization Multiple Choice 1. Suppose you are a star basketball player at a major university in your sophomore year. You are sought after by several NBA teams. Which of the following choices best characterizes your opportunity cost if you choose to drop out of college and enter the NBA? a) The value of your college scholarship that you have given up. b) The skills that two more years of playing at your college would have given you along with their additional value
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been done‚ and repairs had to be made. This repairing process was dubbed “Reconstruction‚” and it managed to last for 12 years along with having attained a diverse amount of political opinions regarding the concept. Overall‚ Reconstruction was a failure because of the South’s lack of obedience towards the North’s plan and the North giving up on the process too soon‚ when the correct time to stop would be years after the South was feeling they were being accepted back in the Union. One of the main
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Opportunity for LVMH in China Introduction With the progress of globalization‚ business external environment‚ which directly affects organizations’ performance‚ becomes more complex and changes continually. Various factors in this complex and volatile business environment play the roles of different level in different organization. At the same time‚ these factors also have the features of time. By 2015‚ this round of economic recession will come to an end‚ and a new round of economic growth is
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