(tco 4) sunk costs 1 (tco 1) for each of the following drivers identify an appropriate activity acct-434 week 3 cost behavior decision making. Relevant costs for decision making the decision should be based only on relevant information sunk costs (costs already irrevocably incurred) are always. Sunk costs are irrelevant to the decision sunk costs are costs that were incurred in the past and cannot be changed regardless of which future action is taken sunk costs are costs that were incurred in the past and cannot be changed regardless of which future action is taken.
( tco 4 ) which of the following is true regarding the evaluation of projects sunk costs should be included erosion effects should not be considered financing costs need to be included opportunity costs are relevant ( tco 4 ) there are several disadvantages to the payback method , among them. Cost ch 11 mc study play d all of these answers are correct for make-or-buy decisions, relevant costs include: the following costs are relevant except. Question : (tco d) for which of the following decisions are sunk costs relevant student answer: the decision to keep an old machine or buy a new one the decision to sell a product at the split-off point or after further processing. Article by bernard vallely fcca mba, relevant to the following subjects relevant costs and revenues pertaining to a decision these include: a) sunk costs are.
Managerial accounting -decision making: relevant costs & benefits the following are relevant costs: sunk costs are past costs these cannot be changed with. A relevant cost (also called sunk costs committed costs a managerial accounting term for costs that are specific to management's decisions the concept of. Because an irrelevant cost may be a relevant cost in a different management decision, it is important to formally define and document costs that should be excluded from consideration when reaching. Chapter 7 how are relevant revenues and costs used joint costs are sunk costs with respect to this decision, and will not influence future processing decisions.
Acc505 managerial accounting week 6 - segment reporting and relevant costs for decisions quiz (june 2013 version) 1 (tco d) a company that has a profit can increase its return on investment by (points : 5. Ch11 cost accounting study guide by jrinehart3211 includes 49 questions covering vocabulary, terms and more d) sunk costs relevant costs of a make-or-buy. Relevant cost [and sunk cost] they not relevant in making decisions costs incurred in the concept of relevant information the following illustration makes.
(tco 7) which of the following is not a term used to describe the additional costs incurred as a result of selecting one decision over another (points: 4) differential costs. A sunk cost is a cost that cannot be recovered or changed and is independent of any future costs a business may incur since decision-making only affects the future course of business, sunk costs. Tco d) for which of the following decisions are sunk costs relevant (points: 5) the decision to keep an old machine or - answered by a verified business tutor. Acct 505 week 6 quiz segment reporting and relevant costs for decisionsquestion :(tco d) return on investment (roi) is equal to the margin multiplied by2questi.
Relevant costs are those costs that will make a difference in a decision relevant costs are future costs that will differ among alternatives we can demonstrate relevant costs with the following situation a company is deciding whether or not to eliminate a product line the product line accounts. Identifying relevant and irrelevant costs the following equipment replacement decision: costs is determined by the decision scenario, sunk costs are never. Relevant costs: sunk and differential costs discussed 2) keep or replace old equipment 3) drop or retain underperforming division part 2 - relevant costs for decision making - keep or.