Define what is differential costs? and what is the relation to relevant costs related directly to...
Define what is differential costs? and what is the relation to
relevant costs related directly to decision making?
Homework Answers
Differential cost is the difference between the cost of two alternative decisions, or of a change in output levels. The concept is used when there are multiple possible options to pursue, and a choice must be made to select one option and drop the others.
Relevant costs are those costs that change with each decision you make. If you have two choices, and you choose A instead of B, relevant costs are those costs that will be different from those associated with choice B. These are costs that directly affect cash flow, the money coming in and going out of a business.
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Define what is differential costs? and what is the relation to
relevant costs related directly to...
What are relevant and irrelevant costs, and how are they used in differential analysis? Why are...
What are relevant and irrelevant costs, and how are they used in differential analysis? Why are sunk costs irrelevant when making a decision?
Kindly provide an explanation as to what are the main concepts pertaining to arriving at relevant...
Kindly provide an explanation as to what are the main concepts pertaining to arriving at relevant costing and discuss how these principles might apply to a manufacturing company. Answer: A relevant cost is a current or future cost that will differ among alternatives. For example, relevant cost of material is the raw material cost that needs to be considered while taking a managerial decision. Relevant cost of material may be in the form of incremental cash flows or opportunity cost....
I want to know this description related with examples What data are relevant in deciding whether...
I want to know this description related with examples What data are relevant in deciding whether to accept an order at a special price? Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision? What is the decision rule in deciding whether to sell a product or process it further?
(4pts) 19) Differential analysis is an approach to the analysis of relevant costs that focuses on...
(4pts) 19) Differential analysis is an approach to the analysis of relevant costs that focuses on the costs that differ under alternative actions. True O False (4pts) 20) Which of the following statements about sunk costs is true? Sunk costs are the result of past decisions. Sunk costs are never relevant to decisions. Sunk costs do not vary between decision alternatives. All of the above. 21) The point in the production process where joint products become separately identifiable is (4pts)...
Describe controllable, differential, relevant, sunk, opportunity, average, incremental, and standard costs. Describe controllable： Differential： Relevant： Sunk：...
Describe controllable, differential, relevant, sunk, opportunity, average, incremental, and standard costs. Describe controllable： Differential： Relevant： Sunk： Opportunity： Average： Incremental： Standard costs： At lease 300 words
Define System 1 and System 2 thinking. Explain how they are relevant to decision-making. Describe the...
Define System 1 and System 2 thinking. Explain how they are relevant to decision-making. Describe the three forms of overconfidence, and give examples of how overconfidence has caused some bad historic decisions. Explain rational decision-making, and briefly discuss the six steps needed to achieve rational decision-making
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors...
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors important in decision making? Sunny Inc. produces 40 000 MP3 Players each month. The market price per MP3 Player is $40. The following data is relevant to MP3 Players' production and sales in November 2018 c. Direct material costs S389 870 Direct labor costs S265 900 Variable manufacturing overhead costs S224 230 Variable...
(10) Define a relation R on Zn (the integers mod n) as follows: lal isR related...
(10) Define a relation R on Zn (the integers mod n) as follows: lal isR related to [b (i.e. [an Rbn) iff there is [cn E Gn such that a b (a) Show that R is an equivalence relation on Zn (b) Give all the equivalence classes for R when n-12.
Manufacturing costs are costs that related to the manufacture your products but CANNOT be traced directly...
Manufacturing costs are costs that related to the manufacture your products but CANNOT be traced directly to the unit product. As I always said, it included all the costs that related to the factory that incurred in producing the products. Eventhough manufacturing overhead cannot be traced directly to the unit product, why it is still important to be included in the total production cost? Please share your idea here.
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.
(4pts) 19) Differential analysis is an approach to the analysis of relevant costs that focuses on the costs that differ under alternative actions. True O False (4pts) 20) Which of the following statements about sunk costs is true? Sunk costs are the result of past decisions. Sunk costs are never relevant to decisions. Sunk costs do not vary between decision alternatives. All of the above. 21) The point in the production process where joint products become separately identifiable is (4pts)...
Question C.1 (12 Marks) Define relevant costs. Why are historical costs irrelevant? a. b. Distinguish between quantitative and qualitative factors in decision making. Why are qualitative factors important in decision making? Sunny Inc. produces 40 000 MP3 Players each month. The market price per MP3 Player is $40. The following data is relevant to MP3 Players' production and sales in November 2018 c. Direct material costs S389 870 Direct labor costs S265 900 Variable manufacturing overhead costs S224 230 Variable...
(10) Define a relation R on Zn (the integers mod n) as follows: lal isR related to [b (i.e. [an Rbn) iff there is [cn E Gn such that a b (a) Show that R is an equivalence relation on Zn (b) Give all the equivalence classes for R when n-12.
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