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SVEN [57.7K]
3 years ago
11

Past costs that are not affected by new decisions are known as

Business
2 answers:
Evgen [1.6K]3 years ago
5 0

The answer is sunk cost .

<h2>Further explanation </h2>

Sunk costs are costs that are incurred and are not refundable. Before the issue, sunk costs are included in the opportunity costs section and are not relevant for future decision making. This term originates from the oil industry where the decision to stop or continue operating an oil well is made based on expected cash flow and not based on a lot of money spent on drilling it. This is usually referred to as embedded costs, previous year's costs, stranded costs, or sunk costs.

According to the dictionary, the sunk costs are costs incurred in the past that will not be affected by current decision making. In the accounting world, sunk costs are defined as costs that have been incurred and generally cannot be changed.

Sunk costs are related to fixed costs so to calculate sunk costs you can use the fixed cost formula, which is as follows:

<u>Fixed costs = sunk costs + fixed costs that can be avoided </u>

If seen from the formulation of fixed costs consisting of sunk costs and fixed costs that can be avoided. Fixed costs that can be avoided are fixed costs components that can be avoided, but sunk costs are components of fixed costs that cannot be avoided.

Learn more

Sunk cost brainly.com/question/7034592, brainly.com/question/13777436

Details

Class: High School

Subject: Business

Keywords: Past costs are not affected by new decisions.

salantis [7]3 years ago
4 0
<span>Past costs that are not affected by new decisions are known as sunk costs. Sunk costs do not need to be taken into account when making new decisions because the money associated with it was already lost and it can not be regained. This money is lost by businesses due to bad decisions, such as poor investments.</span>
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If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the b
Llana [10]

Answer:

(C) Bonds Payable for $150,000

Explanation:

the face value of the bonds will the value at which bonds payable account enter the accounting. Then, there is a discount which decrease the net value of the bonds:

Bonds Payable        150,000 credit

Discount on bonds   15,000  debit

When the bonds are converted, we will write-off these account against common stock and additional paid-in

To wirte-off the account we need to post them in the other side so we got:

Bonds payable debit 150,000 debit

       Discount on bonds         15,000 credit

      Common Stock                       xx credit

      Additional paid.in                    xx credit

These makes option C correct

5 0
3 years ago
If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors r
satela [25.4K]

Answer:

Increase

Explanation:

Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase

8 0
2 years ago
For the month of September, Florida, Inc., incurs a direct materials cost of $12,000 for 7,500 gallons of strawberry lemonade pr
Blizzard [7]

Answer:

The difference in the direct materials cost per equivalent unit between the two months is $0.70.

Explanation:

First calculate the direct cost per equivalent unit in September

Direct cost per equivalent unit  = Total Cost / Total Equivalent units

                                                    = $12,000 / 7,500

                                                    = $1.60

<u>Difference between the two months.</u>

September   =  $1.60

Less August = ($0.90)

Difference      = $0.70

8 0
3 years ago
Suppose that you open your own business and earn an accounting profit of​ $35,000 per year. When you started your​ business, you
Aleonysh [2.5K]

Answer:

B. minus​$2,000.

Explanation:

The computation of the economic profit is shown below:

As we know that

Economic profit = Total revenue - Explicit costs - Implicit costs

= $35,000 - $30,000 - $7,000

= -$2,000

The implicit cost is come from

= $70,000 ×10%

= $7,000

We simply applied the above formula so that the economic profit could come

7 0
3 years ago
Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni
vladimir1956 [14]

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

8 0
3 years ago
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