1. The original cost of the facilities at Clayton is a sunk cost and should be ignored in any decision. The decision being considered here is whether to continue operations at Clayton. The only relevant costs are the future facility costs that would be affected by this decision. If the facility were shut down, the Clayton facility has no resale value. In addition, if the Clayton facility were sold, the company would have to rent additional space at the remaining processing centers. On the other
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Identify relevant and irrelevant costs and benefits in a decision. Relevant Costs for Decision Making Chapter 14 © 2012 McGraw-Hill Education (Asia) Cost Concepts for Decision Making McGraw‐Hill Education (Asia) Garrison, Noreen, Brewer, Cheng & Yuen Slide 2 Identifying Relevant Costs An avoidable cost is a cost that can be eliminated, in whole or in part, by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs are irrelevant costs.
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4 - COMPLETE ONLINE QUESTIONS PHASE 5 - PREPARE TASKS PHASE 6 - LINE MANAGER INTERVIEW PHASE 7 – MEDICAL EXAMS PHASE 8 – JOB OFFER COSTS AND TIME INVOLVED PHASE 1 – CV REVIEW PHASE 2 – PHONE INTERVIEW PHASE 3 – FACE TO FACE INTERVIEW PHASE 4 – COMPLETE ONLINE TEST PHASE
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determine the relevant costs for the expansion decision, and distinguish between the short run and the long run costs. Recommend the key decision-making criteria that Katrina’s Candies should use for expansion decisions in the short run and in the long run. Provide rationale for your response. Relevant costs are those that are avoidable or can be eliminated by choosing one alternative over another. Relevant costs are also known as differential, or incremental, costs. In general, variable costs are relevant
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planning and managing the costs. ABC is a process to identify the costs of all activities and allocating, applying, assigning or tracing costs to products. Activity based costing is a costing technique, tool, system, mechanism or approach. It may be used in addition to the current traditional system or used in place of it. This will enable the new system to be applied consistently so that the opportunity to revert to old ways is limited. Activity based costing is aims to cost the products independent
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1 Hoofdstuk 2 – An introduction to cost term and purposes Kosten worden veelal aangemerkt als de verbruikte middelen om een bepaald doel te bereiken. De kosten worden meestal berekend als de geldeenheden die moeten worden betaald voor de aanschaf van goederen of diensten. Een kostenobject is alles waarvoor een aparte berekening van de kosten is gewenst. Een kostenobject kan bijvoorbeeld een product, dienst, project of activiteit zijn. Cost assignment is een algemene term voor het toerekenen
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the process of identifying, measuring and communicating information about human resources in order to facilitate effective management within an organisation. It is an extension of the accounting principles of matching costs and revenues and of organising data to communicate relevant information in financial terms. The accounting of human resources can be seen as just as much a question of philosophy as of technique. This is one of the reasons behind the variety of approaches and is further underlined
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EOC: E2-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 2) Manufacturing companies usually have three types of inventory. Answer: TRUE Diff: 1 LO: 2-1 EOC: E2-1 AACSB: Reflective Thinking Learning Outcome: Define and use cost-volume-profit analysis to analyze the effects of changes in costs and volume on a company's profits 3) Retailers sell their products to
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MOHAMMED NAFAISE QUESTIONS 1. Define the term cost. Explain various types with relevant examples? 2. Methods and techniques of with relevant industrial examples? COST The cost is defined as the amount which is paid or given up to get something or to achieve the objective of the business. In business the objective may be to make a product, to provide a particular service and so on. Cost is usually a monetary valuation of effort, material, resources, time and utilities consumed risks incurred
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demanded of automobiles will rise e. supply of automobiles will fall Answer: b. quantity demanded of automobiles will fall Explanation: Normal goods are those whose demand increases with increase in income. Now since it is given that the cost of the good rises and all other things remain constant implying that the income is also constant that means the demand will fall as consumer will have less money to buy it. 3) All the following shift the demand curve for automobiles to the right
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