True or False: Cost behavior is the most important characteristic of costs for managerial decision making....
True or False: Cost behavior is the most important characteristic of costs for managerial decision making.
True or False: The quality of the cost equation depends on collecting appropriate data.
Homework Answers
True
Because, cost behavior indicates the effect on net profit. As cost behavior shows the relationship between total cost and level of activity, management can decide the level of activity which results in maximum profit. Whenever management wants to introduce new facility or activity, it analyses the effect on total cost with the help of cost behavior and then takes decision accordingly to result maximum profits.
True
To form cost equation the important factors to be known is 'slope of the cost equation', 'activity level' and the 'fixed cost '. Unless there is appropriate data regarding the level at which operations are carried and the cost which don't change with level of activity and slope at which the cost changes due to change in activity level these factors can't be appropriate. When these factors can't be estimated appropriately the equation can't be qualitative one. So to make quality equation data that is collected needs to be appropriate.
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True or False: Cost behavior is the most important
characteristic of costs for managerial decision making....
In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting , prime costs...
In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting , prime costs vs conversion costsand Function Wise Classification. Discuss all the above cost classifications and explain the importance of each classification (300 words)
Investors primarily use managerial accounting information for decision-making purposes. True False
Investors primarily use managerial accounting information for decision-making purposes. True False
Decision Making Extra Credit 1. Another name for relevant cost is avoidable cost a. True b....
Decision Making Extra Credit 1. Another name for relevant cost is avoidable cost a. True b. False 2. Wages from a job a student gives up to attend summer school would be a sunk cost a. True b. False 3. A special order of goods or services should always be accepted when the incremental revenue exceeds the normal revenue. a. True b. False 4. Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors which...
True or False. Centralized decision making is always superior to decentralized decision making.
True or False. Centralized decision making is always superior to decentralized decision making.
Discuss the importance of accurate and relevant costs information in managerial decision making.
Discuss the importance of accurate and relevant costs information in managerial decision making.
What is decision making? Who is responsible for decision making in a managerial situation?
What is decision making? Who is responsible for decision making in a managerial situation? Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using A) LIFO B) LIFO 1 Beginning inventory, purchases, and sales data for widgets are as follows: April 3 Inventory 15 units @ $30 11 Purchase 12 units @ $27 14 Sale 18 units 21 Purchase 7 units @ $25 25 Sale 10 units
1) Decision theory & decision-making are the same thing. True False 2) ARROW'S THEOREM states that...
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Assignment Question(s):(Marks5) Q1.In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting ,...
Assignment Question(s):(Marks5) Q1.In managerial accounting, costs can be classified by behavior, traceability decision-making, external reporting , prime costs vs conversion costs and Function Wise Classification. Discuss all the above cost classifications and explain the importance of each classification. (2.0 marks) Answer: Q2. Compare Job Order Costing versus Process costing (one marks) Answer: Q3. ABC Company had the following inventories on May 1, 2019(amounts in SR) (two marks) Raw Material30,000 Finished Goods40,000 WIP – Material20,000 WIP – Labor20,000 WIP – Manufacturing...
ERPSim Cost Classification Assignment In managerial accounting, costs are classified into fixed, variable or mixed costs...
ERPSim Cost Classification Assignment In managerial accounting, costs are classified into fixed, variable or mixed costs (based on behavior); product or period costs (for external reporting); and direct or indirect costs (based on traceability). Classification of costs based on behavior helps in cost-volume-profit analysis. Classification based on traceability is important for accurate costing of jobs and units produced. Classification for the purpose of decision-making is important to help management identify costs which are relevant for a decision. This exercise is...
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