The Irrelevance of Sunk Costs Is Best Described by Which

question 59

Multiple Choice

The irrelevance of sunk costs is best described by which of the following business decisions?

• A)forestry companies continue to sell logs even though they are reporting large losses
• B)forestry companies sell up and exit the market when they report losses
• C)new forestry companies enter the market and earn profits selling logs
• D)all of the above

Journalize entries for labor cost incurred and the application of factory overhead.

Apply factory overhead based on machine hours and calculate over-or underapplied amounts.

Understand the use of perpetual inventory system in determining the cost of issuance of materials.

Record transactions involving the purchase, use, and transfer of materials in a job order costing system.

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Definitions:

Potentialities

Capabilities or possibilities that may come into being or action; latent qualities or abilities that may be developed.

Humanistic Approach

An approach to psychology that emphasizes empathy and stresses the good in human behavior, focusing on the individual's potential and stressing the importance of growth and self-actualization.

Self-Centeredness

A personality characteristic involving an excessive focus on oneself and one's own needs, often neglecting others.

Narcissism

A psychological condition characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.