Discuss the benefit of identifying avoidable and unavoidable cost in decision making process.

Q: Explain the difference between observable and hidden quality costs.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Explain the implementation issues of the cost estimation methods

A: Cost estimation is the process of determining the probable cost of a product before starting the…

Q: Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is…

A: Answer:   True.

Q: How is sensitivity analysis used to cope with uncertainty in decision making?

A:

Q: All future costs are relevant in decision making. O True O False

A: When we make decision-making, we consider the differential between the costs and the opportunity…

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: Explain the Role of environmental costing in improving organisational performance

A: Environmental Costing is an important tool for understanding the role played by the Natural…

Q: Describe two potential problems that should be avoided in relevant-cost analysis.

A: Relevant cost are the cost that are linked to specific business decisions. They are a part of…

Q: Cost management information should be timely and accurate. Which of these attributes is…

A:

Q: what is differrance between effectiveness an Efficiency

A:

Q: Future costs that do not differ among the alternatives are not relevant in a decision.

A: In accounting when it comes to making decisions we classify costs into different types or…

Q: Define the term avoidable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Which type of cost center has a planning focus, and which type has an evaluation focus?

A: Cost Center: It is a department within an organization to which costs can be assigned.

Q: What is an opportunity cost and why should it be included when making decisions?

A: Opportunity costs is the costs of next best alternative foregone by accepting current alternative.…

Q: Explain the differences between planning, directing, and controlling.

A: Planning: It means thinking in advance what to do, when to do and how the actions would take place…

Q: Which of the investment constraints is expected to have the most impact on your decision process?…

A: Investment constraints: These are the conditions that limit or restrict an investor's investment…

Q: Define Cost recovery method

A: Cost recovery is a method in accounting wherein a business only records the revenue it earns from a…

Q: Why is the contribution margin an important concept forincremental decision making?

A:

Q: What is the benefit of identifying avoidable and unavoidable cost in decision making process?

A: Avoidable costs: Avoidable Costs, as the name suggests, are the costs that can be avoided of the…

Q: Explain why unit costs must often be interpreted with caution?

A: Unit cost: Unit cost refers to the average cost per unit which is computed when the total cost of…

Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to…

A: There could be lot of factors which are to be considered while comparing alternative solutions to a…

Q: All future costs are relevant in decision making.” Do you agree? Explain.

A: INTRODUCTION Relevant costs are the costs which are useful for decision making. It is the costs…

Q: Explain the concept of contribution, its limiting factors and how it can effectively be used in…

A: INTRODUCTION: Decision-making is the process or act of determining anything using logic, intuition,…

Q: are measures of activities that require the use of resources and thereby cause costs Value Chain…

A: Solution: Cost drivers are measure of activities that requires the use of resources and thereby…

Q: Please use an example to explain the opportunity-cost concept and why it is used in decision-making.

A: Opportunity Cost - It is the value of best alternative when a particular decision was made by higher…

Q: Discuss the techniques that can be applied to obtain relevant and accurate cost estimates.

A: The question is based on the concept of cost estimation, which is one the most important parameter…

Q: Explain what opportunity cost is. supplement the explanation with an appropriate example

A: The decision to choose one from given alternatives leads to concept of opportunity cost.

Q: Discuss drawbacks/difficulties of Cost- Benefit Analysis used under Utilitarian Approach in Ethics.

A: Cost benefit analysis: It is the technique that is used to compare the project cost and benefits…

Q: Explain the difference between resource spending and resource usage.

A: Resources: Resources are the economic elements that enable people to carry out activities. A…

Q: Identify and discuss the factors that affect the focus and practice of cost management.

A: The practice of managing and organizing the expenses associated with running a firm is known as cost…

Q: Briefly explain the importance of distinguishing between relevant and irrelevant costs for the…

A: The costs that are affected by decision are relevant cost and  those costs are not get affected are…

Q: Describe briefly the importance of Cost-Benefit Analysis in the selection or development of a…

A: Cost-benefit analysis is an approach to estimate the strengths and weaknesses of a system and…

Q: A determination of cost savings is most likely to be an objective of a

A: The answer is as fallows

Q: Explain how environmental costs can be measured and reduced.

A: How to reduce the environmental costs:-  1) Adopt a sustainable business strategy :- Business…

Q: Explain the implementation problems in cost estimation.

A: Cost estimation: It is the development of a defined relationship between cost object and cost…