A Client in Another Province Needs Immediate Help in Solving

question 178

Short Answer

A client in another province needs immediate help in solving a personnel training problem in the shipping department.Match each activity on the basis of its relationship with this consulting engagement.Items may have multiple classifications.
A)Relevant Costs
B)Sunk, Irrelevant Costs
C)Opportunity, Irrelevant Costs
D)Opportunity Cost
E)Irrelevant Costs
F)Sunk Costs
-The firm is also sending the same four staff members to Toronto, for a two week engagement upon their return from this trip.The firm's cost of this trip will be $10,000

• A)Relevant Costs
• B)Sunk, Irrelevant Costs
• C)Opportunity, Irrelevant Costs
• D)Opportunity Cost
• E)Irrelevant Costs
• F)Sunk Costs
• -The firm is also sending the same four staff members to Toronto, for a two week engagement upon their return from this trip.The firm's cost of this trip will be $10,000

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Definitions:

Investment Center

A business unit within a company that is responsible for its own revenue, expenses, and investment of capital, often evaluated on its return on investment.

Residual Income

The net income an entity generates above its required rate of return or cost of capital.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Indirect Expenses

Costs not directly attributable to the production of a specific product or service, such as administrative salaries and utilities.