Trivium Education Services Online Tutor Interview Questions, Process, and Tips for Experienced

Sunk cost refers to the cost that has already been incurred and cannot be recovered.

• Sunk cost is a past cost that has no relevance to future decision-making.

• It is important to ignore sunk costs when making rational decisions.

• Examples of sunk costs include money spent on non-refundable tickets or investments that have already lost value.

Contribution refers to the act of giving or providing something, usually in terms of effort, resources, or ideas, to a cause or project.

• Contribution involves actively participating and making a positive impact.

• It can be in the form of sharing knowledge, skills, or expertise.

• Contributions can be financial, material, or time-based.

• Examples of contribution include volunteering for a charity, donating money to a cause, or ...read more

A contra account is a general ledger account that is used to offset the balance of another related account.

• Contra accounts are used to reduce the balance of a related account.

• They are typically used to show the net balance of an account after adjusting for certain transactions.

• Examples of contra accounts include accumulated depreciation, sales returns, and allowance for doubtful accounts.

Interest on bonds is reported as cash flow from operating activities in the cash flow statement.

• Interest paid on bonds is considered an operating expense and is included in the operating activities section of the cash flow statement.

• Interest received on bonds is considered an operating cash inflow and is also included in the operating activities section.

• The interest amount is reported net of any tax paid or received.

• Th...read more

Increase in product price by $10 affects income statement by increasing revenue and cost of goods sold.

• Revenue will increase by the amount of the price increase

• Cost of goods sold will also increase by the amount of the price increase

• Gross profit will remain the same

• Net income may increase or decrease depending on other factors such as operating expenses and taxes

Product cost and period cost are two types of costs incurred by a business.

• Product cost is the cost of producing or purchasing a product, including direct materials, direct labor, and overhead costs.

• Period cost is the cost of operating a business that is not directly related to the production of a product, such as marketing, rent, and salaries of administrative staff.

• Product cost is included in the cost of goods sold, ...read more

Absorption costing includes all manufacturing costs, while variable costing only includes variable manufacturing costs.

• Absorption costing allocates fixed manufacturing costs to products, while variable costing treats fixed costs as period expenses.

• Absorption costing is required for external financial reporting, while variable costing is used for internal decision-making.

• Absorption costing may result in higher inventory...read more