A Cost of Resources Used in Production for Which No

question 28

Multiple Choice

A cost of resources used in production for which no actual monetary payment is made is a(n) __________ cost.

• A)tacit
• B)implicit
• C)covert
• D)explicit

Learn how to create and interpret Excel charts, including the use of sparkline and clustered column charts.

Understand how to prepare journal entries for transactions involving property, plant, and equipment including sales, disposals, and purchases.

Identify and calculate various types of depreciation and amortization for fixed assets and intangibles.

Understand the accounting treatment and journal entries for asset exchanges and trade-ins with commercial substance.

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Definitions:

Committed Fixed Costs

Expenses that a company has an obligation to pay, regardless of the level of production or sales activity, such as rent, insurance, and salaries.

One-Year

A period of time consisting of 12 consecutive months.

Sunk Cost

A cost that has already been incurred and cannot be recovered.

Contribution Format

An income statement format that separates fixed and variable costs, showing contribution margin which is sales revenue minus variable costs.