Answered: Your roommate at school believes that…

Your roommate at school believes that all fixed costs are always avoidable. Do you agree? How would you explain your point of view to your roommate?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1Q: Your roommate at school believes that all fixed costs are always avoidable. Do you agree? How would...

See similar textbooks

Related questions

Q: If you are the Financial Manager of Zenith Construction Company, which of the three alternatives has…

A: Solution Concept There are three different alternative course of action given The alternative with…

Q: Which of the following best defines the concept of a relevant cost? a. A past cost that is the same…

A: Relevant Cost: it is a cost which is used for taking decision for the business management. this…

Q: Ahmed owns Ahmed Manufacturing LLC based in Muscat. In deciding on several important…

A: “Since you have asked multiple question, we will solve the first 3 for you. If youwant any specific…

Q: When deciding to accept a special order, which of the following costs are relevant? A. Fixed…

A: When business has option to select one alternative out of two alternatives, then alternative which…

Q: “If a product is generating a loss, then it should be discontinued.” Do you agree? Explain.

A: A product should not be discontinued simply because it is generating loss because there are many…

Q: Which of the following best describes an "opportunity cost"? Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Explain the principal-agency problem. Can you propose one potential solution for this problem to…

A: The Principal-agency problem is one of the most common problems in modern businesses. It refers to…

Q: survive. In addition to death, however, one could also say that self-sufficiency is boredom or…

A: Trade is considered beneficial for people across the globe as they help the consumer to choose…

Q: Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree?…

A: Suck Cost: a cost that has already been spent but cannot be recouped; this kind of expense is…

Q: Why should a standard cost that is higher than an actual cost be of concern to management? Utilize…

A: Solution Concept Standard cost Standard cost means the cost that is expected to be…

Q: What are the different types of cost?

A: Costs refer to any expenditure done by a business or a firm in the process of production of a…

Q: ________ are the costs associated with not choosing the other alternative.A. Sunk costsB.…

A: The term "cost" alludes to the overall expense incurred in the production of goods and services as…

Q: differential costs where you had to choose between two alternatives

A: Differential cost refers to the difference between the cost of two or more alternative options. It…

Q: A cost that is shared by all of the available options or all divisions. Because it is the same for…

A: Committed costs are the costs or obligation which company has already made and will be incurring in…

Q: Which one is fixed cost اخترأحد الخیارات a. Both A & B O b. Rent,salaries, Insurance O c. Only B…

A: The fixed costs are the costs which remain fixed for the period of time.

Q: “Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do…

A: Sunk cost: Sunk cost is the cost that has been incurred as a result of past events and such cost…

Q: characteristics critically affect the design of a cost management system? Select one: a. Culture…

A: Cost management system consisting of the formal methods that include controlling and planning of…

Q: Give examples of various costs Attending college involves incurring many costs. Give an example of…

A: Sunk costs are costs that can not be recovered later. Discretionary costs are costs that are not…

Q: Charles has provided some of the costs he expects to incur as follows. Decide on the The cost object…

A: Answer:

Q: The benefit lost when choosing one option precludes receiving the benefits from an alternative…

A: Cost :— The two basic type of Cost incurred by Businesses are Fixed and Variable. Variable Cost…

Q: Explain why all costs are controllable by someone at some time but in the short run some costs may…

A: Cost accounting: The process of identifying, calculating and recording the cost related to the…

Q: nas no fixed costs, and her marginal cost Barb produce?

A: The maximum number of tires to be produced will be the point where marginal cost is equal to the…

Q: Which of the following statements is false? (You may select more than one answer.)a. Under some…

A: Sunk Cost: It is refers to the cost or the expense that had incurred in the past and can no longer…

Q: In your own words, explain what differential costs mean. How are fixed costs and variable costs…

A: The cost can be classified on the basis of nature variable or fixed. The variable cost are directly…

Q: “If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain.

Q: What is the highest acceptable manufacturing cost for hwich Domingo would be willing to produce the…

A: Target costing is a costing methodology in which costs can be determined by setting target level.

Q: Would the pandemic and shortages could cause some companies to decide to use a different method of…

A: The costing methods is the methods that helps the coampiens to identify the amount spent on the…

Q: With the use of activity based cost, is eliminating cheap cars will solve the problem from cost of…

A: The activity-based costing or ABC system is a method of accounting used to calculate the total cost…

Q: 1.Does a non-profit homeless shelter fit better into a job costing, process costing, or hybrid…

A: “Hey, since there two questions posted, we will answer first question. If you want other question to…

Q: “You should always choose the supplier who offers the lowest price per unit.” Do you agree? Explain.

A: Choosing a supplier doesnot solely depend on price of the unit offered by supplier. There are many…

Q: The potential benefit of one alternative that is lost by choosing another is known as a. An…

Q: Which of the following costs can be ignored when making a decision? a. Opportunity costs. b.…

A: Sunk cost can be ignored when making a decision. It is irrelevant cost for decision making. Sunk…

Q: Is one that can be avoided or eliminated by making a decision not to invest, or to cease investing.…

A: Avoidable cost are relevant cost which will cease to exist if the activity ceases to exist. They…

Q: Give an example of a product you would like to make and sell (like coffee - just pretend). What are…

A: Production Cost: It includes expenses incurred by a firm when it manufactures a product or provides…

Q: Critics of absorption costing have increasingly emphasized its potential for leading to undesirable…

A: Absorption Costing: The absorption costing is a method used to allocate the fixed manufacturing…

Q: What type of cost is expertise? Is it a fixed cost or a variable cost? Defend your answer.

A: SOLUTION- FIXED COST ARE THOSE COST WHICH DO NOT CHANGE WITH A REASONABLE LEVEL OF CHANGE .…

Q: Which of the following best describes an "opportunity cost"? Group of answer choices costs that were…

A: Opportunity cost is the loss of the benefit which is forgone to choose the best possible…

Q: What is the difference between a direct cost and an opportunity cost? Can you show the difference…

A: For proper control and management decision, management is to be provided with the necessary data to…

Q: _______________ are the costs associated with not choosing the other alternative Sunk costs

A: Relevant costs: These are the costs which are relevant to a decision

Concept explainers

Long Term Career Development

Long-term career development is the process of selecting a career, developing skills, and molding the career path in the long term. It’s a lifelong process of learning and decision-making that leads to obtaining one's desired job and lifestyle. Long-term career development takes time and effort to lead a successful career path.

Question

Your roommate at school believes that all fixed costs are always avoidable. Do you agree? How would you explain your point of view to your roommate?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

You are trying to decide whether to take a job after you graduate or go onto graduate school. Consider the following questions as you make your decision. A. Which of these costs, for the most part, would be relevant (R), and which would be irrelevant (IR)? Cost of your Undergraduate education Salary with an undergraduate degree Salary with both an undergraduate degree and a graduate degree Rent Car Insurance Graduate school tuition and fees Food costs Moving expenses B. Which of these costs could have a differential amount that is relevant/irrelevant, depending upon the location and or policies of your new job?
Which of the following is not related to Opportunity costs? None of the choices O Rental Income given up when you live in a house you own. Salary given up to start a business O fixed costs to be incurred when you accept a special request from an existing client.
Which of the following is not related to Opportunity costs? a. Salary given up to start a business b. Rental Income given up when you live in a house you own. c. fixed costs to be incurred when you accept a special request from an existing client. d. None of the choices
what financial arguments could you use to justify your proposed recommendations to segregate FLTs and the worker?
In the discussion of Big Idea Five, we identified that, “self-sufficiency is death” because most of us would not be able to produce for ourselves the food and shelter that we need to survive. In addition to death, however, one could also say that self-sufficiency is boredom or ignorance. How does specialization and trade help you to avoid boredom and ignorance?
What would be a current example of differential costs where you had to choose between two alternatives?
Generally speaking, the _________ the risk in a job, the _________ workers’ compensation insurance will cost. Select one: a. None of these is correct b. lower; more c. higher; less d. lower; less
Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree? Please explain the reasoning for your answer.
“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do youagree? Explain
______ are the costs associated with not choosing the other alternative. A. Sunk costs B. Opportunity costs C. Differential costs D. Avoidable costs
One of your long-term customers asks if you can change the terms to FOB Destination to help them save money. Do you change the terms, why or why not? What positive and negative implications could this have for your business, and your customer? What, if any, restrictions might you consider if you did change the terms?
Which of the following is a cost objective? Select one: O A. The cost of educating a student O B. The cost of constructing a house The cost of carrying a passenger O C. O D. All of the above.