An Expenditure That Has Already Been Made and Cannot Be

question 39

Multiple Choice

An expenditure that has already been made and cannot be recovered is called a _______ cost.

• A) nonretrievable
• B) floating
• C) sunk
• D) diseconomy of scale

Explain the implications of Sarbanes-Oxley Act on internal controls and financial reporting.

Identify factors influencing a business's control environment.

Understand the concept, establishment, and use of a petty cash fund.

Understand the concept and utility of Electronic Funds Transfer (EFT) in business transactions.

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Definitions:

Volume Variance

A metric used to measure the difference between the budgeted quantity of output and the actual output, often analyzed to assess performance or plan for future action.

Fixed Manufacturing Overhead

These are production costs that do not change with the level of production output, such as rent for factory buildings or salaries for factory management.

Overhead Applied

The portion of estimated manufacturing overhead cost that is charged to individual jobs based on the predetermined overhead rate.

Denominator Level

Refers to the total amount of capacity or activity base used to allocate fixed costs to products or services in cost accounting.