Question

Costs of a production process that yields multiple products.

The benefits given up by choosing an alternative course of action.
Future data that differs among alternatives.
Costs that were incurred in the past and cannot be changed regardless of which future action is taken.
The full costs to develop, produce, and deliver the product or service.

A. Target Full Product Costs
B. Opportunity Costs
C. Relevant Information
D. Target Pricing
E. Incremental Costs
F. Joint Costs
G. Sunk Costs

Answer 1

In the given case we need to tell the most correct option for the statements:

For Statement 1 = F Joint cost

Whenever two or more products are produced in the process by default without separation it is called joint cost.

For Statement 2 = B. Opportunity Cost

Opportunity Cost is not a cost and is the value of revenue forgone, for choosing the current opportunity.

For Statement 3 = C. Relevant Information

This refers to the future data as it is relevant for decision making, and will differ for each alternative.

For statement 4 = G. Sunk Cost

Sunk Cost is the cost which has already been incurred in the past and cannot be changed, or its impact will be same in no manner it can be avoided.

For Statement 5 = A. Target Full Product Costs

Under Target Full Product Cost the cost of a product from its very initial stage to the stage until its sold is calculated and called as target cost to be achieved.