Relevant costs and decision-making, Cost Accounting

Relevant Costs and Decision-Making

The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevance of costs in decision-making is concerned to where they are ignorable in relation to the decision made or whether they are not avoidable; in that case they will stay irrespective of the decision taken. Therefore relevant costs in decision-making are said to be incremental and future costs relating to the decision to be made. If they will result in a difference then costs are incremental as like an example of avoidable costs result in reduced costs if they are ignored. Future costs are those costs that have not now been incurred that are they are not committed costs or sunk costs.

Posted Date: 2/7/2013 1:29:47 AM | Location : United States







Related Discussions:- Relevant costs and decision-making, Assignment Help, Ask Question on Relevant costs and decision-making, Get Answer, Expert's Help, Relevant costs and decision-making Discussions

Write discussion on Relevant costs and decision-making
Your posts are moderated
Related Questions
compare tradition costing and activity costing methods of overheads abpsrption based on production units,labour hourd and machine hours

Relationship between Cost Accounting and Business Enterprise Cost accounting, like will be mentioned later to adopts a cost center approach to accounting for costs. A cost cen

The total demand (marginal benefit) curve for visiting Yosemite is as follows: Price = 5000-10*NumberOfTrips -10*TonsOfVisibleTrash. a. Suppose the quantity of trash=100 tons. D

ANALYSIS OF VARIANCE When the actual are not similar from the standards, variance exists. Variance may be unfavorable or favorable. When the actual cost is more than the standa

Denair Fine Wines, Inc., is planning to bring out a higher-quality wine product than any currently available in Stanislaus county. They've decided on selling the blended, fortified

G. Mills was appointed a local agent for the High Power Mobile Workshop Bolt (HPMW-B) on 1 April 2009. The HPMW-B is manufactured by Mobile Equipment Ltd (MEL). The company charges

Break-Even Analysis Break-even point is the volume of sales at that there is no loss or. Break-even charts graphically show the relationship of cost to profits and volume and

As controller for Edmonton Cosmetic Hospital, you are looking into the possibility of utilizing Activity- Based-Costing to assign overhead costs to patient surgeries. As a first st

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility. This decision will create

Budgetary Planning and Control - Accounting Techniques A budget is a   plan of action expressed in monetary terms. Therefore it is a quantified plan of what one intends to do.