Question: relevant or irrelevant E7-17 (Static) Identifying Relevant and Irrelevant Costs and Benefits [LO 7-2,7-3, 7-4, 7-5, 7-6) Choose from the dropdown given whether the associated
E7-17 (Static) Identifying Relevant and Irrelevant Costs and Benefits [LO 7-2,7-3, 7-4, 7-5, 7-6) Choose from the dropdown given whether the associated cost or benefit is relevant irrelevant to the related decision Re Irr Decision Cost or Benefit 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 5. Decision: Sell unassembled and unfinished furniture or sell finished assembled furniture and unassembled table. 6. Decision: XYZ Tire Company is considering dropping one of its 10 models of tires Common fixed costs 7. Decision ABC Golf Co produces custom golf clubs and is considering purchasing the putter from a manufacturer Direct labor. of custom putters Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa, 8. Cost of night crew Florida, for an executive training session. The airline has excess capacity on the scheduled flight date. 9. Decision: A major regional airline has been approached to provide 200 seats at a discounted price to Tampa, 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, 10 Florida, for an executive training session. The airline does not have excess capacity on the scheduled flight date. Discounted ticket price
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