Accounting Terminology
Listed Below Are Eight Technical Accounting Terms Introduced

question 67

Essay

Accounting terminology
Listed below are eight technical accounting terms introduced or emphasized in this chapter:
$$\begin{array} { | l | l | } \hline \text { Opportunity cost } & \text { Incremental analysis } \\\hline \text { Sunk cost } & \text { Split-off point } \\\hline \text { Joint costs } & \text { Out-of-pocket costs } \\\hline \text { Relevant information } & \text { Joint products } \\\hline\end{array}$$
Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. ______ (a) Data pertaining to future time periods which may vary among alternative courses of action. ______ (b) The point at which manufacturing costs are split between finished goods inventory and work in progress. ______ (c) The benefit foregone by pursuing one course of action over another. ______ (d) Products which emerge from common materials and shared production processes. ______ (e) A cost incurred in the past that will not change as a result of future actions. ______ (f) Costs yet to be incurred which are expected to vary under different courses of action. ______ (g) The examination of differences between future costs and revenue under varying courses of action.

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Definitions:

Cultural Factors

Elements derived from a society's values, practices, norms, and beliefs that influence behavior and interactions within that society.

Psychological Perspective

An approach to understanding human behavior and mental processes that involves looking at psychological principles, theories, and research findings.

Allport

Refers to Gordon Allport, a pioneering psychologist known for his theory of personality and the study of prejudice.

Collective Conscious

A set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society, term coined by sociologist Émile Durkheim.