Assumptions-relevant costs , Managerial Accounting

Assignment Help:

Assumptions for relevant costs

The key assumptions made in relevant costing are:

The cost behavior is recognized.
The amount of fixed costs, unit variable costs, selling prices and sales demand are known with certainty.
The objective of the decision maker in the short-term is to maximize satisfaction which can be defined as maximization of short-term profit.
The information on which the decision is based is complete and reliable.

There are various types of decisions that can be considered in this section, Illustrations comprise:

a. Make or Buy decisions
b. Shut down problems
c. Extra shift decisions
d. Joint cost decisions

Related Discussions:- Assumptions-relevant costs

Illustrate the techniques used in management accounting, Determine the The ...

Determine the The tools and techniques used in management accounting 1. Financial policy and accounting : every concern has to take a decision about the sources of raising fun

Z or t statistics, Z or t Statistics If n ≥30 we use Z, if, n Ho: B ...

Z or t Statistics If n ≥30 we use Z, if, n Ho: B = O that is, there is no relationship between X and Y HA: B≠ O There is a significant relationship between X and Y The l

Accounting cycle, Accounting Cycle is the name given to the combined proces...

Accounting Cycle is the name given to the combined process of recording and processing the accounting proceedings of a company. The series of steps start when a transaction takes p

Describe the principles of cost accounting, Describe the Principles of cost...

Describe the Principles of cost accounting Principles of cost accounting: The fundamental principles of costing are identical and are given below: 1. Cost is related to

Seasonal variations and size of business, Seasonal Variations : Commodities...

Seasonal Variations : Commodities along with seasonal demand results in raised level of working capital requirement. It could be offset through scaling down operations throughout t

Amount transferred from wip to finished goods, HGT Company initialized the ...

HGT Company initialized the accounting period with the following beginning balances: During the accounting period, the company purchased $60,000 of raw materials and ended

Budgets and human behaviour, what are the most effective management styles ...

what are the most effective management styles in an organisation

State the opportunity cost, State the Opportunity cost The net selling ...

State the Opportunity cost The net selling price, rental value or transfer value which could be obtained at a point in time if a particular asset or group of the assets were to

Steps of developing a cost estimating relationship , STEPS OF DEVELOPING A ...

STEPS OF DEVELOPING A COST ESTIMATING RELATIONSHIP Firmly speaking, a CER is not a quantitative method. It is a framework for using suitable quantitative methods to quantify a

Analysis of credit file, Analysis of Credit File: Credit file is a compila...

Analysis of Credit File: Credit file is a compilation of each the relevant credit information of the customer. All the credit information collected throughout the credit informati

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages