Choose letter C (for committed cost) or D (for discretionary cost) to indicate the type of each
Question:
a. Control is first provided during the capital budgeting process.
b. Typical examples include advertising, research and development, and employee training.
c. This type of cost cannot be easily reduced even during temporary slowdowns in activity.
d. There is usually no "correct" amount at which to set funding levels.
e. Typical examples include depreciation, lease rentals, and property taxes.
f. This type of cost often provides benefits that are not monetarily measurable.
g. Temporary reductions can usually be made without impairing the firm's long-range capacity or profitability.
h. This cost is primarily affected by long-run decisions regarding desired capacity levels.
i. It often is difficult to ascribe outcomes as being closely correlated with this type of cost.
j. This cost usually relates to service-type activities.
Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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