Which of the Following Costs Are the Benefits That Are

question 86

Multiple Choice

Which of the following costs are the benefits that are forfeited or lost when one alternative is chosen over another?

• A)Incremental cost
• B)Sunk cost
• C)Opportunity cost
• D)Direct cost

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Definitions:

Investing Activities

Activities concerning the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Non-Current Assets

Long-term assets that are not expected to be converted into cash within one year of the balance sheet date, including property, plant, equipment, and intangible assets.

Gain on Sale

The financial profit realized when the selling price of an asset exceeds its book value or costs at the time of sale.

AASB 107/IAS 7

Accounting standards that set out the requirements for entities to present statements of cash flows, classifying cash flows during the period from operating, investing, and financing activities.