Relevant costs in decision-making:
Homework Answers
Answer- Are future costs that represent Differences between decision alternatives
These are the costs which are related to specific decision and based on which the Future will change. These are the avoidable costs that will be incurred if the particular alternative is selected. This helps in eliminating unnecessary data , which in turn helps in decision making Process. So it includes Opportunity cost, avoidable cost and Differential cost
Add Answer to:
Relevant costs in decision-making:
are future costs that represent differences between decision alternatives. result from past...
True or False: Future costs that do not differ between the alternatives are never relevant in...
True or False: Future costs that do not differ between the alternatives are never relevant in a decision.
relevant in comparing decision alternatives o all of the above costs would be considered relevant in...
relevant in comparing decision alternatives o all of the above costs would be considered relevant in comparing decision alternatives Question 2 3.5 pts AG-2m Company reported the following cost information: Cost A Cost B Cost C Units sold June $19,740 $55,020 $37,380 42,000 units July $35,720 $99,560 $37,380 76,000 units Which of the above costs would be classified as a mixed cost? Cost A O Cost B O Cost C both Cost A and Cost B are mixed costs all...
Which of the following is not a step in the decision-making model? Oa. determine costs and...
Which of the following is not a step in the decision-making model? Oa. determine costs and benefits for both feasible and unfeasible alternatives Ob. define the problem Oc. consider qualitative factors Od. identify alternatives Oe. total relevant costs and benefits for each alternative Which of the following involves choosing between alternatives with an immediate or limited time frame in mind? Oa. Strategic decision making Ob. Restructured alternatives management Oc. Short-run decision making Od. The limited options model De. None of...
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....
(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)...
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 13,000 units of a component used...
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 13,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.31. The unit cost is: Direct materials $0.89 Direct labor 0.27 Variable overhead 0.07 Fixed overhead 2.10 Total unit cost $3.33 Required: 1. What are the alternatives for Basu Company? Make the part in house or buy the part externally 2. Assume that none of the fixed cost is avoidable. List...
6) Mary must decide between two alternatives for the weekend: babysitting or yard work. If she...
6) Mary must decide between two alternatives for the weekend: babysitting or yard work. If she babysits, she will receive $40 and will incur $15 in transportation costs. If she does yard work, she will receive $40 and will incur $3 in lawn mower gas and oil costs and S5 in transportation costs. The payment she would receive for the jobs is relevant in deciding which alternative to select 6) 7) Sunk costs are sometimes relevant for decision-making purposes 8)...
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...
I need help solving this case study: Costs for Decision Making: An Instructional Case of Relevant...
I need help solving this case study: Costs for Decision Making: An Instructional Case of Relevant Costs and Differential Analysis of Cost Reduction Alternatives I have a PDF of the case study, the questions are CASE QUESTIONS Provide responses, displaying all work, to the following questions: 1. General Questions: a. What costs are relevant to each of the three alternatives: offshoring, relocating functions, and automating functions? b. What are some of the nonfinancial considerations associated with each of these alternatives?...
Which of the following describes out-of-pocket costs? This refers to the incremental revenue generated from taking...
Which of the following describes out-of-pocket costs? This refers to the incremental revenue generated from taking one particular action over another It arises from a past decision and cannot be avoided or changed; it is irrelevant to future decisions These require a future outlay of cash and are relevant for current and future decision making These are the potential benefits lost by taking a specific action when two or more alternative choices are available Another term for relevant costs
relevant in comparing decision alternatives o all of the above costs would be considered relevant in comparing decision alternatives Question 2 3.5 pts AG-2m Company reported the following cost information: Cost A Cost B Cost C Units sold June $19,740 $55,020 $37,380 42,000 units July $35,720 $99,560 $37,380 76,000 units Which of the above costs would be classified as a mixed cost? Cost A O Cost B O Cost C both Cost A and Cost B are mixed costs all...
Which of the following is not a step in the decision-making model? Oa. determine costs and benefits for both feasible and unfeasible alternatives Ob. define the problem Oc. consider qualitative factors Od. identify alternatives Oe. total relevant costs and benefits for each alternative Which of the following involves choosing between alternatives with an immediate or limited time frame in mind? Oa. Strategic decision making Ob. Restructured alternatives management Oc. Short-run decision making Od. The limited options model De. None of...
(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)...
6) Mary must decide between two alternatives for the weekend: babysitting or yard work. If she babysits, she will receive $40 and will incur $15 in transportation costs. If she does yard work, she will receive $40 and will incur $3 in lawn mower gas and oil costs and S5 in transportation costs. The payment she would receive for the jobs is relevant in deciding which alternative to select 6) 7) Sunk costs are sometimes relevant for decision-making purposes 8)...
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...
Which of the following describes out-of-pocket costs? This refers to the incremental revenue generated from taking one particular action over another It arises from a past decision and cannot be avoided or changed; it is irrelevant to future decisions These require a future outlay of cash and are relevant for current and future decision making These are the potential benefits lost by taking a specific action when two or more alternative choices are available Another term for relevant costs
Most questions answered within 3 hours.
-
Adria Lopez, owner of Success Systems, decides to prepare a
statement of cash flows for her...
asked 59 seconds ago -
The reach and involvement of the federal government, in terms of
its role in disaster relief,...
asked 3 minutes ago -
Problem: The equilibrium constant, Keq, is 5 x 10^-11 m HCO3
<-----------> H^+ + CO3^-2 Calculate...
asked 10 minutes ago -
Explain how blackbody radiation led to the idea of "quanta."
Will rate answer!
asked 16 minutes ago -
Two noble gases (Ne and He) are injected into the chambers of an
insulated container. Each...
asked 11 minutes ago -
Suppose you purchase a zero coupon bond with a face value of
$1,000, maturing in 18...
asked 16 minutes ago -
Do you believe that the $785,000 amount at the center of the
Overstock-Grant Thornton dispute was...
asked 17 minutes ago -
Find and , the mean and standard deviation of the
sampling distribution of :
μ = 25,...
asked 41 minutes ago -
According to the manufacturer of a certain candy, 9% of the
candy produced are red. If...
asked 59 minutes ago -
A Eucher Deck consists of 24 cards. In a four- player game, each
player is dealt...
asked 1 hour ago -
This is a challenging question.
The titration of an impure sample of KHP found that 36.00...
asked 1 hour ago -
1. Starting from rest, an automatic subway train is controlled
by a computer
that causes it’s...
asked 41 minutes ago