0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Why are variable costs more relevant than fixed costs in short-term decision making?
Fixed costs are costs that cannot be changed in the short-term without causing significant harm to the organization. Because you cannot change them, you should not consider them in comparative analysis of alternatives.
Which ratio shows an organizations effectiveness in minimizing production costs?
There are two measures of production costs: total costs and marginal costs. The relevant ratio depends on which of these is being minimised.
What relevant costs might you consider in deciding whether to accept an order at a reduced selling price?
Shipping costs, long term agreement contracts
How large does a population sample need to be?
The answer depends on various factors. Some of these are:resource limitations (people, time, costs)variability of the characteristic of interesthow accurate the results need to be (consequences of making incorrect decision based on testing your hypothesis).
Fixed costs are costs that?
Fixed costs are costs that donot vary with the quantity of the product produce and have no relation with volume of product like administration staff salary or building rent etc.
What costs are relevant in the decision to shut down the Clayton facility?
Which Costs Are Relevant In The Decision To Shut Down The Clayton Facility
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Are marginal costs relevant costs?
If marginal costs are relevant for specific situation or specific decision making scenario then marginal costs are relevant costs otherwise marginal costs can be irrelevant.
All future costs are relevant in decision making?
Future costs are relevant in decision making if the decision will affect their amounts. For example, suppose you're trying to decide whether to drive to work or take the bus. Relevant future costs information includes (1) the cost of gasoline and tolls needed to drive to and from work and (2) the cost of bus fare because both of these costs depend on your decision. However, future costs that won't change - such next month's rent on your apartment - are not relevant because, regardless of your decision, they will not change. Note that past costs are never relevant in decision making.
Are all future cost are relevant in decision making?
Future costs are relevant in decision making if the decision will affect their amounts. For example, suppose you're trying to decide whether to drive to work or take the bus. Relevant future costs information includes (1) the cost of gasoline and tolls needed to drive to and from work and (2) the cost of bus fare because both of these costs depend on your decision. However, future costs that won't change - such next month's rent on your apartment - are not relevant because, regardless of your decision, they will not change. Note that past costs are never relevant in decision making.
Are sunk costs ever relevant for decision-making purposes?
NO, its cost which was wasted in past we can not recover it so it is not relevant for decision making.
The most relevant costs that should be used in decision making are?
dadada
In management accounting what are relevant costs?
Relevant cost is that cost which will be affected due to the decision company going to make.
Is variable cost a relevant cost?
No. If a variable cost does not differ between alternatives than it is irrelevant.
What are the differences between relevant cost and irrelevant cost?
In decision making process those cost which are effected from the decision under consideration those costs are called relevent costs and those costs which have no impact on decision making of specific project are called irrelevent costs.
Is it true that a cost that is the same for multiple alternatives under consideration is not relevant?
Relevent costs are those costs which are important for any specific decision, if any cost is required for all the options in specific decision then it is not relevant as no matter which alternative is choosen this cost is required to be beared that's why that cost is not considered as relevant cost.
Which of the following costs are NEVER relevant in the decision-making process?
the record of the school's sports programs SAM<3
