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1

An expense (or cost) that would not be incurred if the department, product, or service is eliminated is called a(n) cost.
2

The process of analyzing alternative investments and deciding which assets to acquire or sell is called budgeting.
3

If the company accepts an additional volume of business that will increase variable costs by $15,000, the variable cost increase can be referred to as an cost.
4

The value is a dollar amount used to evaluate the acceptability of an investment; it is an estimate of an asset's value to the company.
5

If you have given up 6 hours of work at $12 an hour to attend your accounting class, the $72 of foregone wages is an cost to you of attending class.
6

A cost incurred or avoided as a result of management's decisions is called an -of- cost.
7

The net cash inflows from a $20,000 investment will be $5,000 per year, which results in a period of 4 years.
8

Amortization expense, which cannot be avoided or changed in any way because it arises from a past decision, is an example of a cost.
9

expenses (or costs) will continue even if the department, product, or service is eliminated.
10

of is the rate that equates the net present value of a project’s cash inflows and outflows to zero.
11

is the process of restating future cash flows in terms of their present value.
12

rate is a minimum acceptable rate of return. It is used when interpreting the internal rate of return.
13

Amortization for tax purposes is called .
14

cost is a future cost that differs between alternatives in a particular business decision. It is also called differential cost.







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