Question

Which costs are pertinent to economic decision making? Which costs are not relevant?

Which costs are pertinent to economic decision making? Which costs are not relevant?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Relevant cost are important for decision making.these cost will be affected by specific management decision being considered.these cost are relevant for calculating cost for the organisation.these cost are relevant for continue operation as well as closing business.this is relevant for make and buy decision etc.

Irrelevant and sunk cost are not relevant for business decisions.these cost are either may be positive or negative.these costs are those that will not change in the future when we take decision.

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
Why, in general, are fixed costs not relevant in short term decision making?
Why, in general, are fixed costs not relevant in short term decision making?
Which THREE of the statements referring to relevant cost for short-term decision making are correct? Select...
Which THREE of the statements referring to relevant cost for short-term decision making are correct? Select one or more: A. A cost has to relate to the objective of the business in order to be relevant for short-term decisions. B. Referring to the relevant cost of labour: if you have to choose between paying an overtime premium to existing workers and hiring additional contract workers from outside, you would choose the lower amount of the two to be included in...
Explain what a sunk cost is. Are sunk costs relevant in decision making? Why or why...
Explain what a sunk cost is. Are sunk costs relevant in decision making? Why or why not?
“Business decision making requires identification of decision alternatives, logging relevant costs/benefits of each choice, evaluating qualitative...
“Business decision making requires identification of decision alternatives, logging relevant costs/benefits of each choice, evaluating qualitative issues, and selecting the most desirable option based on judgmental balancing of quantitative and qualitative factors.” Explain the analytics for managerial decision making
1. Why are sunk costs relevant in decision making? Explain 2. What are the factors that...
1. Why are sunk costs relevant in decision making? Explain 2. What are the factors that make a cost or revenue item relevant? Have you been in a situation where you needed to make this distinction? If so, how did you determine relevancy?
1)Costs which are always relevant in decision making are those costs which are: a. sunk. b....
1)Costs which are always relevant in decision making are those costs which are: a. sunk. b. avoidable. c. variable. d. fixed. ------------------------------ 2) A labor efficiency variance resulting from the use of poor quality materials should be charged to: a. the production manager. b. manufacturing overhead. c. the industrial engineering department. d. the purchasing agent. ------------------------------ 3) The Gomez Corporation is considering two projects, T and V. The following information has been gathered on these projects:                                                                                         Project T                        Project V Initial...
Which of the following is not relevant in a special order decision? Variable costs. Opportunity costs....
Which of the following is not relevant in a special order decision? Variable costs. Opportunity costs. Sunk costs. Avoidable fixed costs. None of the answer choices is correct.
Relevant Costs in Short-Term Decision Making Your friend is also in this same class. He says,...
Relevant Costs in Short-Term Decision Making Your friend is also in this same class. He says, “The topic on relevant costs is easy……..all you have to know is that variable costs are always relevant, and fixed costs are always irrelevant.” REQUIRED: Is his statement about variable costs correct? (Answer Yes or No) Is his statement about fixed costs correct? (Answer Yes or No) Provide one example to support your answer concerning variable costs in #1 Provide one example to support...
Why could a manager be justified in ignoring fixed costs when making a decision about a...
Why could a manager be justified in ignoring fixed costs when making a decision about a special order? When would fixed costs be relevant when making a decision about a special order?
Which of the following costs are always irrelevant in decision making? A. sunk costs B. opportunity...
Which of the following costs are always irrelevant in decision making? A. sunk costs B. opportunity costs C. fixed costs D. avoidable costs
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT