When Evaluating Alternative Uses of a Capital Asset,equivalent Decisions Are

question 88

Multiple Choice

When evaluating alternative uses of a capital asset,equivalent decisions are reached using the opportunity cost approach and ________.

• A) cost-volume-profit analysis
• B) contribution margin approach
• C) absorption costing approach
• D) incremental analysis

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Definitions:

Liability Account

An accounting record representing money or value owed by the company to others.

Decrease

A reduction in size, number, or amount.

Debit

A bookkeeping record that leads to an uptick in a firm's assets or a reduction in its liabilities on the balance sheet.

Account Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.