FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
- Is there a difference between relevant costs and incremental costs? Explain.
Identify at least two (2) irrelevant costs in a make vs buy decision
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- One cost that is irrelevant in decision making is a sunk cost Group of answer choices True Falsearrow_forwardccarrow_forwardIn incremental analysis, only relevant costs are considered when making a decision among alternatives. Explain what relevant costs are. Would these include only variable costs? Explain.arrow_forward
- Understand and apply the lower-of-cost-or-market rule.arrow_forwardThe cost that is used for the benefit of many cost objects and cannot be easily related to any specific cost object: Select one: O a. Fixed cost O b. Indirect cost O c. Direct cost d. Variable costarrow_forwardExplain the impact of the cost-volume-profit connection on pricing strategy.arrow_forward
- Give two examples of sunk costs, and explain why they are irrelevant in decision making.arrow_forwardexample of lower of cost or net realizable value and explainarrow_forwardWhich of the following is NOT considered in cost-volume-profit analysis? Variable costs Fixed costs Opportunity costs Mixed costsarrow_forward
- Y,a,b and X explain these with help of examples according to cost behaviourarrow_forward1. What factors determine the relevance of information to decision making? 2. What are sunk costs, and why are they not relevant in making decisions? 3. What information is relevant in an outsourcing decision?arrow_forwardDo you agree from the following statements- Explain in details with examples 1.Variable costs are controllable but fixed costs are not. 1.Sunk costs are irrelevant cost while making any decision.arrow_forward
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