Asked by
Terrence Mathipa
on Oct 11, 2024
Verified
Mark purchased a machine two years ago to make experimental boards.The machine will be used to manufacture the new board.The cost of this machine is:
A) an opportunity cost
B) a sunk cost
C) a differential cost
D) a period cost
Sunk Cost
Expenses that were previously incurred and cannot be reclaimed.
Opportunity Cost
The cost of foregoing the next best alternative when making a decision, essentially what is sacrificed when a particular choice is made.
Differential Cost
The variation in overall expenses incurred from choosing one option instead of another.
- Comprehend the fundamental principles and categorizations of expenses in accounting.
- Distinguish and articulate the diverse kinds of costs related to products and functions, such as costs of products, costs of periods, and costs of opportunities.
Verified Answer
SS
Learning Objectives
- Comprehend the fundamental principles and categorizations of expenses in accounting.
- Distinguish and articulate the diverse kinds of costs related to products and functions, such as costs of products, costs of periods, and costs of opportunities.