Irrelevant Costs

question 55

Multiple Choice

Irrelevant costs

• A)do not differ among alternatives.
• B)can be avoided by a business.
• C)are the same as opportunity costs.
• D)are costs that will be incurred in the future.

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Definitions:

Expense Accounts

Accounts used to record expenses in the general ledger, capturing costs associated with operating the business.

Salaries and Wages Payable

Liabilities owed to employees for work performed that have not yet been paid.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred, ensuring the financial statements are in compliance with the accrual basis of accounting.

Payroll

Refers to the total amount of wages, salaries, bonuses, and other compensation paid to employees by a company during a specific period.