Which of the Following Terms Are Synonymous

question 34

Multiple Choice

Which of the following terms are synonymous?

• A) Avoidable costs and irrelevant costs
• B) Unavoidable costs and incremental costs
• C) Sunk costs and relevant costs
• D) Joint costs and sunk costs

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Definitions:

Balance Sheet

The balance sheet is a financial statement that provides a snapshot of a company's financial position, listing assets, liabilities, and shareholders' equity at a specific point in time.

Purchases Returns and Allowances

Transactions where buyers return goods to the seller or receive a reduction in the selling price, decreasing the cost of purchases.

Sales Discounts

Reductions applied to the sale price as an incentive or for early payment.

Perpetual Inventory System

The inventory system of a company that keeps a continuous (perpetual) record of inventory on hand and of the cost of goods sold.