ACCT 1210: Chapters 22-24, Appendix B

Front

A cost the manager has the power to determine or at least significantly affect the amount incurred.

Back

Controllable costs

Front

A unit of a business that generates revenues and incurs costs is called a

Back

Profit center

Front

The potential benefit lost by choosing a specific alternative course of action among two or more.

Back

Opportunity cost

Front

Incremental cost

Back

An additional cost incurred only if a company pursues a particular course of action.

Front

After-tax net income divided by the average amount invested in a project.

Back

Accounting rate of return

Front

Sunk costs

Back

The result of past decisions and cannot be changed by any current or future decisions

Front

Direct expense

Back

Costs traced directly to a department and incurred for that department’s sole benefit.

Front

The process of analyzing alternative long-term investments and deciding which assets to acquire or sell.

Back

Capital budgeting

Front

Utilities expenses would most likely be allocated based on:

Back

Square feet of floor space occupied.

Front

Out-of-pocket cost

Back

Future outlays of cash associated with a particular decision.