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LuckyWell [14K]
3 years ago
10

What costs are considered “relevant” and which are considered “irrelevant “to a business

Business
1 answer:
Klio2033 [76]3 years ago
4 0

Answer:

Relevant costs are costs that will be affected by a managerial decision. Irrelevant costs are those that will not change in the future when you make one decision versus another.

Explanation:Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

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Paloma Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $32,000 Supplies Expens
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<u>Answer:</u>

<u>Closing entries </u>

Date  account and explanation                    Debit           Credit

Dec 31  Service revenue                               108000  

Income summary                                                         1080000

(To close revenue)    

   

Dec 31  Income summary                           72000  

Supplies expense                                                         6000

Salaries and wages expense                                 40000

Utilities expense                                                          8000

rent expense                                                                  18000

(To close expense)    

   

Dec 31  Income summary                            36000  

Owner's capital                                                         36000

(To close income summary)    

   

Dec 31  Owner's capital                           22000  

Owner's Drawing                                                         22000

(To close withdrawal)  

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4 years ago
Which of the following is measured by utility? A. The satisfaction a person gets from consumption. B. The cost of adding a singl
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Answer:the satisfaction a person gets from consumption

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