Which of the Following Distinctions Does Not Help to Explain

question 56

Multiple Choice

Which of the following distinctions does not help to explain the difference between relevant and irrelevant cost?

• A)historical vs.replacement cost
• B)sunk vs.incremental cost
• C)variable vs.fixed cost
• D)out-of-pocket vs.opportunity cost
• E)All help to explain the difference.

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Definitions:

Payroll Tax Expense

The financial charge associated with employing labor, including taxes imposed by government entities such as Social Security and Medicare taxes in the United States.

Current Liability

A financial obligation that is due to be paid within one year.

Notes Payable

Financial obligations or loans that companies are required to pay back within a specified timeframe, often evidenced by promissory notes.

Wage and Tax Statement

A document, typically a W-2 form in the U.S., that reports an employee's annual wages and the amount of taxes withheld from their paycheck.