Ballantyne Uniforms Will Be Purchasing One or Other of Two

question 5

Multiple Choice

Ballantyne Uniforms will be purchasing one or other of two models of high efficiency industrial washing machines. It will also have to purchase an extension of the racking with linen bags that move dirty laundry to the washers. The racking system should be viewed as a

• A) Sunk cost
• B) Common future cost
• C) Opportunity cost
• D) Ancillary cost
• E) Variable cost

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Definitions:

Misc. Expense

Miscellaneous Expense refers to small, infrequent costs that are not categorized under a specific heading in financial statements.

Misc. Revenue

Miscellaneous revenue refers to income generated from activities not central to a business’s main operations.

Change Fund

Fund made up of various denominations that are used to make change for customers.

Contra-Asset

A contra-asset account is an asset account where the account balance is a negative amount. It's used to offset the value of the asset account it is associated with, such as accumulated depreciation.