Question

According to our textbook, what criteria is used to determine whether a revenue or cost item...

  1. According to our textbook, what criteria is used to determine whether a revenue or cost item is "relevant"? (5pts)
  2. When evaluating short-term business decisions, explain why it is important to evaluate both quantitative (financial) and qualitative (non-financial) criteria. (5pts)
  3. Provide an example of a decision, including the quantitative and qualitative factors specific to that example. (5pts)
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The revenue will be relevant when it is revenue which is earned on that special order in addition to the existing revenue. Any addition to the existing revenue will be relevant. Even revenue foregone because of any decision will be relevant.

Variable cost is considered relevant as it is additional cost being incurred to make a product. Other cost will be considered as relevant if any of those cost increase due the decision being taken. The increase in that cost due to the decision will be considered relevant. Example an additional packaging expense of $50 will be incurred due to this special order will be considered as relevant cost.  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
-Financing activities is defined as: The principal revenue-generating activities of an organization and other activities that...
-Financing activities is defined as: The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities Cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents Cash flows that result in changes in the size and composition of the contributed equity and borrowings of the entity (i.e. bonds, stock, cash dividends) All of the above. -Income statement reflect...
Diamond Company Statement of Comprehensive Income for the year ended December 31, 2019 Sales revenue Cost...
Diamond Company Statement of Comprehensive Income for the year ended December 31, 2019 Sales revenue Cost of goods sold Gross profit $1,294,000 737,000 $557,000 Operating Expenses Advertising expense $ 7,900 Depreciation expense Salaries expense 64,000 169,000 240,900 Profit $316,100 Diamond Company Statement of Financial Position December 31, 2019 Assets Current Assets Cash $ 37,000 Accounts receivable Inventory Total current assets 115,000 106,500 $258,500 Non-current Assets Property, Plant, & Equipment $565,000 Less: Accumulated depreciation 115,000 450,000 Total Assets $708,500 Liabilities Current...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with the predecessor auditor. 2) Preplan the audit. 3) Establish the terms of the engagement. 4) None of these. Question 22 (3 points) What factor would most likely would cause a CPA not to accept a new audit engagement? Question 22 options: 1) the prospective client's unwillingness to permit inquiry of its legal counsel 2) the inability to review the predecessor auditor's documentation 3) the...
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c....
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c. company/corporation d. sole proprietorship 1 points    QUESTION 2 A business financial statement is meant to convey information about the business to _________________ users in order to help them make decisions about the business. a. internal and external b. internal only c. external only d. none of the above 1 points    QUESTION 3 Which of the following is an advantage of being a...
The Senior Partner of the firm you work for has appointed you to a new role....
The Senior Partner of the firm you work for has appointed you to a new role. It is now your responsibility to review upcoming accounting standards and provide a report to the partners on the proposed standard and the opinions of other industry players on the changes. Firstly, you are required to find a current exposure draft or proposal for a new accounting standard which has been opened for public comments. (These can be found on the websites of most...
Case 4b: Consultancy research for a not for profit organisation Karen Handley, Oxford Brookes University Thomas’s...
Case 4b: Consultancy research for a not for profit organisation Karen Handley, Oxford Brookes University Thomas’s work placement is at a management consultancy firm, Spectrum, which provides strategic and financial advice to organisations in the UK not-for-profit (NFP) sector. The NFP sector has different segments, the largest of which includes organisations which have a public interest objective, and which are known as charities. These are typically organisations dedicated to improving the quality of life for specific groups or individuals (e.g....
Read the LDC Cloud Systems Case Study and answer the question below: THE EMAIL The email...
Read the LDC Cloud Systems Case Study and answer the question below: THE EMAIL The email had been sent from one mid-level accounting manager at headquarters to another about six months earlier. The message read: Bill, here are the accounting issues I mentioned, and as you know, some of these go back a ways. The data that supports these accounts are not always clear and keep changing, and we are not sure what the correct accounting treatment is for these...
Item 1 In the case below, the original source material is given along with a sample...
Item 1 In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button. Original Source Material Student Version In the 1986 soccer World Cup final, the Argentine star Diego Maradona did not score a goal but his passes through a ring of West German defenders led to two Argentine goals. The value of a star cannot be assessed only by looking at his...
This case assignment draws from the Business Information Systems and the Systems Acquisition and Development modules...
This case assignment draws from the Business Information Systems and the Systems Acquisition and Development modules (Chapters 5 to 8). Its purpose is to provide you with experience in analyzing organizational information systems, making recommendations to improve these systems, and formulating a plan to execute on your recommendations. 1. Recommend one of your alternatives that is the best solution to the main issue and justify your recommendation. Your justification should be based on the key decision criteria and you must...
Item 1 In the case below, the original source material is given along with a sample...
Item 1 In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button. Original Source Material Student Version But what are reasonable outcomes of the influence of global processes on education?While the question of how global processes influence all aspects of education (and who controls these forces) is multidimensional and not completely testable, there appear to be some theories of globalization as it...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT