Relevant and Irrelevant Costs
Relevant costs are expected future costs that differ among alternative courses of action and may be eliminated if some economic activity is changed or deleted….
Relevant costs are expected future costs that differ among alternative courses of action and may be eliminated if some economic activity is changed or deleted….
Controllable costs are those which may be directly influenced by unit managers in a given time period. Noncontrollable costs are those costs which are not…
In the short run, it is advantageous for the firm to remain open as long as sufficient sales revenue can be generated to cover variable…
Product Cost These are costs directly and indirectly identifiable with the product. They are direct materials, direct labor, and factory overhead. These costs provide no…
Financial is largely concerned with financial statements for external use by those who supply funds to the firm and by other persons who may have…
Job Order Cost Accumulation System A job order cost accumulation system is most suitable where a single product or batch of products is manufactured according…
Total fixed costs do not change as production levels change within the relevant range; therefore, the level of production is not a factor in determining…
PERIODIC COST ACCUMULATION SYSTEMS The first step in comprehending a periodic cost accumulation system is to understand the flow of costs as goods pass through…
These bases are commonly used to compute the factory overhead application rate: (1) units of production, (2) direct materials cost, (3) direct labor cost, (4)…
A problem faced by management is selecting from among alternative production processes which have different fixed and variable costs. For example, management may be considering…