Megastar Software recently developed new spreadsheet software, Ad-soon, which to
ID: 2592457 • Letter: M
Question
Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Whould the opportunity costs be recorded in Megastar's accounting records? (Please answer in pragraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Whould the opportunity costs be recorded in Megastar's accounting records? (Please answer in pragraph by critical thinking) Megastar Software recently developed new spreadsheet software, Ad-soon, which to market by mail through ads in computer magazines. Just prior to introducing Ad-soon, Megastar received an unexpected offer from vision computer company to buy all rights to the software for £4 million cash (information) Question: Whould the opportunity costs be recorded in Megastar's accounting records? (Please answer in pragraph by critical thinking)Explanation / Answer
Opportunity costs are relevant in taking management decisions. but when it comes to accounting opportunity costs are not recorded in books of account. they do no not meet recognition criteria.
It is not an income because it is not earned. Not an asset because it is only an offer still there is no contract signed, no performance made under the contract to recognise benefits for the performed obligations.