TAILIEUCHUNG - Lecture Survey of accounting (4/e) - Chapter 13: Relevant information for special decisions

After you have mastered the material in this chapter, you will be able to: Identify the characteristics of relevant information, make appropriate special order decisions, make appropriate outsourcing decisions, make appropriate segment elimination decisions, make appropriate asset replacement decisions. | Chapter Thirteen Relevant Information for Special Decisions © 2015 McGraw-Hill Education. 1 Relevant Information Two primary characteristics distinguish relevant from useless information: Relevant information differs among the alternatives under consideration. Relevant information is future oriented. 13-2 2 Sunk Cost A sunk cost has been incurred in a past transaction and cannot be changed. It is not relevant for making current decisions. I wish I hadn’t bought that stock. Cost me $25,000, and now it’s worth only $15,000. I really need a car but don’t have the cash! Just sell the stock and buy the car! You’ve already taken the loss. The $25,000 is a sunk cost. Like I said, sell the stock and buy the car you need. I don’t want to take the loss! 13-3 3 Opportunity Costs An opportunity cost is the sacrifice that is incurred in order to obtain an alternative opportunity. I think I am beginning to see what you mean. The opportunity cost of owning the stock is $15,000. That is the amount .

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• Relevant information
• Special decisions
• Opportunity costs
• Avoidable cost
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Financial statements
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method