TAILIEUCHUNG - Lecture Financial and managerial accounting (4/e): Chapter 23 - Wild, Shaw, Chiappetta

Chapter 23 - Relevant costing for managerial decisions. After you have read this chapter you should be able to: Describe the importance of relevant costs for short-term decisions, evaluate short-term managerial decisions using relevant costs, determine product selling price based on total costs, identify relevant costs and apply them to managerial decisions,. | Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 23 Relevant Costing for Managerial Decisions Conceptual Learning Objectives C1: Describe the importance of relevant costs for short-term decisions. 23- A1: Evaluate short-term managerial decisions using relevant costs. A2: Determine product selling price based on total costs. Analytical Learning Objectives 23- P1: Identify relevant costs and apply them to managerial decisions Procedural Learning Objectives 23- Decision making involves five steps: Define the task and the goal. Identify alternative actions. Collect relevant information on alternatives. Select the course of action. Analyze and assess decision. Decision Making C 1 23- Costs that are applicable to a particular decision. Costs that should have a bearing on which alternative a manager selects. Costs that are avoidable. Future costs that differ between alternatives. 1 2 Relevant Costs C 1 23- All costs incurred in the past that cannot be changed by any decision made now or in the future. Sunk costs should not be considered in decisions. Classification by Relevance: Sunk Costs Example: You bought an automobile that cost $10,000 two years ago. The $10,000 cost is sunk because whether you drive it, park it, trade it, or sell it, you cannot change the $10,000 cost. C 1 23- Future outlays of cash associated with a particular decision. Example: Considering the decision to take a vacation or stay at home, you will have travel costs (out-of-pocket costs) only if you choose a vacation. Classification by Relevance: Out-of-Pocket Costs C 1 23- The potential benefit that is given up when one alternative is selected over another. Example: If you were not attending college, you could be earning $20,000 per year. Your opportunity cost of attending college for one year is $20,000. Classification by Relevance: .

• Tài chính doanh nghiệp
• Managerial accounting
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Relevant costing
• Managerial decisions
• Managerial accounting for managers
• Lecture Managerial accounting
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost