The area of accounting concerned with the effect of alternative courses of action on revenues and costs is called:

Group of answer choices

gross profit analysis

capital investment analysis

differential analysis

cost-volume-profit analysis

Flag question: Question 2Question 210 pts

Costs that have been incurred in the past but are no longer relevant to decision-making are:

Group of answer choices

relevant

sunk

differential

discontinued

Flag question: Question 3Question 310 pts

The amount of income that is forgone from the best available alternative to the proposed use of cash or its equivalent is called:

Group of answer choices

sunk cost

opportunity cost

differential cost

opportunity revenue

Flag question: Question 4Question 410 pts

In deciding whether to replace fixed assets, the book values of the fixed assets being replaced are sunk costs and are irrelevant.

Group of answer choices

True

False

Flag question: Question 5Question 510 pts

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is called opportunity cost.

Group of answer choices

True

False