Asked by
Dajuan Niver
on Dec 05, 2024
Verified
Which of the following costs would not be recorded in the cost accounting system?
A) Sunk costs
B) Unitised costs
C) Opportunity costs
D) Allocated costs
Sunk Costs
Sunk costs are past expenses that have already been incurred and cannot be recovered, and thus should not affect future business decisions.
Opportunity Costs
The loss of potential gain from other alternatives when one alternative is chosen.
Cost Accounting System
A framework used to record, analyze, and allocate costs associated with a company's operations and production processes.
- Clarify the distinctions between sunk costs, opportunity costs, and relevant costs within decision-making processes.
Verified Answer
SS
Learning Objectives
- Clarify the distinctions between sunk costs, opportunity costs, and relevant costs within decision-making processes.