please find the attached files and let me know if you have any question.
Running head: ACCOUNTING CONCEPTS
It is the fee already been sustained and cannot be recovered. A sunk cost differs from
imminent costs that a corporation might face, such as verdicts about inventory acquisitions costs
or product appraising. An example is an amount paid as rent to the landlord. In decision making
it helps in knowing what not to misuse.
Opportunity costs signify the benefits a person, investor or business fails out on when
choosing one substitute over another (Kieso, Weygandt & Warfield 2016, p56). An example is
money spent when one goes to watch a movie. It plays a role in ensuring decisions are made well
when one spends time elsewhere.
Accounting cost is the detailed cost of an action. An accounting cost is logged in the
ledgers of the commercial, so the cost seems in a unit's financial reports. An example is an
amount spent by a company to produce a product. In decision making it ensures control over
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2016). Intermediate Accounting, Binder Ready
Version. John Wiley & Sons.