Question: a. What makes a cost relevant for decision making? b. Why aren't fixed costs relevant for most short-term decisions?

a. What makes a cost relevant for decision making? b. Why aren't fixed costs relevant for most short-term decisions?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

39&40 QUESTION 39 Which cost classification uses this formula: Direct Labor + Manufacturing Overhead? a. prime cost O b. total product cost c. conversion cost Od period cost QUESTION 40 Opportunity...

Q:

4 Finance and Managerial Accounting Questions for my review sheet! I rate well. Thanks! Question 11 Which of the following statements is true? ? A. Fixed costs are sometimes relevant for decision...

Q:

11. Sunk costs are: a. relevant for decision making b. Not relevant for decision making c. cost to be incurred in future d. future costs 12.Budgeted sales of X for March are 18000 units. At the end...

Q:

Please assist me: Provide answers as well as explanation Q.49. Most suitable basis for apportioning insurance of machine would be: (a) Floor Area (b) Value of Machines (c) No. of Workers (d) No. of...

Q:

Multiple choice questions- Highlight the right choice for the following questions. Each question carries one mark. Questions with working notes carry more marks. 1.Break-even analysis is also called?...

Q:

. 1. Kilgore, McCorvey & Mason, Inc. has a business decision to make. They are evaluating ROMOC costs to determine whether these costs could be relevant to the decision. Which of the following would...

Q:

Which of the following is incorrect with regard to short-term decision making? A. Variable costs and fixed costs should be computed on a per unit basis so it will be easier to analyze effects on...

Q:

Budgeted depreciation expense would not appear on a: a. Selling and administrative expense budget. b. Budgeted income statement. c. Cash budget. d. All of these answers are correct. Which of the...

Q:

please guide on this question Q.10. Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs Q.11. Describe the method...

Q:

1. Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $6 to produce and has a contribution...

Q:

Forcing upwind and downwind polluters to pay the same tax will produce the desired concentration (reduction), but at a cost which exceeds the minimum cost means of achieving that concentration. Is it...

Q:

The normal boiling point of a liquid X is 400 K. which of the following statement is true about the process X (1) X (g)? (A) At 400K and 1 atm pressure AG = 0 (B) At 400K and 2 atm pressure AG +ve...

Q:

Item 4 1 1 points eBook Print References Check my workCheck My Work button is now enabled Item 4 Problem 9 . 3 A ( Static ) Preparing a bank reconciliation statement and journalizing entries to...

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

Consider a country where you may want to work. Research the cultural differences you may encounter and work out how this would affect the management of people in organisations in that country.

Q:

If you have fellow students from a number of countries, choose fi ve of them and discuss with them their working experience of how recruitment, performance management and reward operate in practice.

Q:

Disparate impact analysis (the four-fifths rule, standard deviation analysis) is used in employment discrimination cases. The National Assessment of Education Progress conducted by the U.S....