Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ou are deciding whether to sell Product A or product B . Product A costs R 2 , 0 0 0 to produce and sells

ou are deciding whether to sell Product A or product B. Product A costs R2,000 to produce and sells for R7,500. Product B has already been produced (and will not continue to be produced in the future) and did cost R1,500 but sells for R5,000. Fixed overheads are R10,000. What is the opportunity cost of selling Product B?
Question 4 Select one:
a.R500
b.R5,000
c.R50,000
d.R5,500Identify the following descriptions of the types of costs considered when making decisions using relevant costing.
Depreciation
General Overhead, non-cash expense, oppourtunity cost, commited cost, sunk cost.
Answer 1
General Overhead, non-cash expense, oppourtunity cost, commited cost, sunk cost.
10-year lease for the hire of office space
Answer 2
General Overhead, non-cash expense, oppourtunity cost, commited cost, sunk cost.
Administrative staff salaries
Answer 3
General Overhead, non-cash expense, oppourtunity cost, commited cost, sunk cost.
The revenue given up when choosing one option over the other
Answer 4
General Overhead, non-cash expense, oppourtunity cost, commited cost, sunk cost.
Research and development

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: James A Heintz, Robert W Parry

20th Edition

538745215, 978-1111624743

More Books

Students also viewed these Accounting questions