Question: Choose from the dropdown given whether the associated cost or benefit is relevant/irrelevant to the related decision. Cost or Benefit Relevant/ Irrelevant Decision 1.
Choose from the dropdown given whether the associated cost or benefit is relevant/irrelevant to the related decision. Cost or Benefit Relevant/ Irrelevant Decision 1. Decision: Should you take the bus or drive your car to school for the semester? $300 repair bill to fix brakes. 2. Decision Eliminate an unprofitable segment. Unavoidable fixed overhead. 3. Decision: Make or buy a component used in manufacturing a product. Selling price of the final product. 4. Decision: Accept a special order. Variable overhead. The cost of producing an unfinished and unassembled table, 5. Decision: Sell unassembled and unfinished furniture or sell finished assembled furniture. Common fixed costs. 6. Decision: XYZ Tire Company is considering dropping one of its 10 models of tires. Decision: ABC Golf Co. produces custom golf clubs and is considering purchasing the putter from a manufacturer 7. of custom putters. Direct labor. Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa, 8. Cost of flight crew. Florida, for an executive training session. The airline has excess capacity on the scheduled flight date. Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa, 9. Florida, for an executive training session. The airline has excess capacity on the scheduled flight date. In-flight meals. Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa, Discounted ticket price. 10. Florida, for an executive training session. The airline does not have excess capacity on the scheduled flight date.
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Explanation 1 Relevant 2 Irrelevant Since unavoidable cost is same ... View full answer
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