A ________ Cost Is Always Irrelevant

question 66

Multiple Choice

A ________ cost is always irrelevant.

• A)conversion
• B)differential
• C)sunk
• D)manufacturing

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Definitions:

NFP Accounting

Accounting practices specific to Not-For-Profit organizations, focusing on fund accounting, donor restrictions, and reporting financial performance in a manner distinct from profit-oriented businesses.

Capitalize

The act of recording a cost or expense on the balance sheet for purposes of delaying full recognition of the expense over time through depreciation or amortization.

Amortize

To gradually write off the initial cost of an intangible asset over its useful life, reflecting the consumption of the asset's value.

Capital Assets

Long-term tangible or intangible assets owned or controlled by a business that are used to produce goods or services and are not intended for sale in the regular course of business.