Identify at least two (2) irrelevant costs in a make vs buy decision
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Identify at least two (2) irrelevant costs in a make vs buy decision
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- Is there a difference between relevant costs and incremental costs? Explain. Identify at least two (2) irrelevant costs in a make vs buy decisionDefine the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?Which of the following costs can be ignored when making a decision?a. Opportunity costs. b. Differential costs. c. Sunk costs. d. Relevant costs.
- Costs that will differ between alternatives and influence the outcome of a decision areIn a decision analysis situation, which one of the following costs is generally not relevant to the decision?A. Differential cost.B. Avoidable cost.C. Incremental cost.D. Historical cost.One cost that is irrelevant in decision making is a sunk cost Group of answer choices True False
- Any cost that is avoidable is relevant for decision purposes. O A. True O B. FalseWhat is a general rule to remember with respect to a sell-or-process-further environment, and what costs are irrelevant to the decision?List the acceptable cost flow assumptions under IFRS. Be sure to explain the reasoning as to why IFRS find certain cost flow assumptions unacceptable.
- Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on future events) and should be excluded in decision-making? A. avoidable costs B. unavoidable costs C. sunk costs D. differential costsWhich of the following is an irrelevant cost? Group of answer choices An avoidable cost An incremental cost A sunk cost An opportunity costBriefly explain the importance of distinguishing between relevant and irrelevant costs for the purpose of decision making. Provide at least two examples of situations in which the relevant vs. irrelevant classification is useful
