Part 1A: (10 Marks) (Questions: 1-5, Each Question carry 2 Marks) Questions: Cho

Question

Part 1A: (10 Marks) (Questions: 1-5, Each Question carry 2 Marks) Questions: Choose the Best option 1.Wh be changed by any decision made now or in the future? ch of the following best describes the cost that has already been incurred and that cannot A. Differential cost B. Opportunity cost C. Salvage cost D. Sunk cost 2. Which of the following best describes the amount by which an asset's value decreases until it reaches its salvage value? A. Depreciation B. Appreciation C. Approximation D. Estimation i nirct material cost related to your Apple computer would be the cost for the

Explanation / Answer

1)- answer (D) sunk cost is that cost which incurred once cannot be changed by any decision now or in mear future .

Opportunity cost is the cost incurred on the best alternative chosen when the other one is left unchosen .

Salvage cost is the net value of an asset left after a specific useful period of its life .

Differential cost referes to the difference between the cost of two alternatives to be chosen amongst .

2.)- answer (a) depreciation best describes the amount by which an asset reaches its salvage value which is charged on an asset and deducted annualy depending upon the asset and method used by the company to charge depreciation either by written down value method or diminishing method whichever the company thinks fit whereas appreciattion refers to an increase in the value of an asset .

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.