TAILIEUCHUNG - Lecture Accounting: What the numbers mean (10/e): Chapter 16 - Marshall, McManus, Viele

Chapter 16 - Costs for decision making. After reading this chapter, you should be able to answer the following questions: What are the meaning and application of the following “cost” terms: differential, allocated, sunk, and opportunity? How are costs determined to be relevant for short-run decisions? What is the special pricing decision when a firm is at full vs. idle capacity? . | 2008 The McGraw Hill Companies Inc. All Rights Reserved. McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. Chapter 16 Costs for Decision Making PowerPoint Authors Susan Coomer Galbreath . CPA Charles W. Caldwell . CMA Jon A. Booker . CPA CIA Cynthia J. Rooney . CPA McGraw Hill Irwin Copyright 2014 by The McGraw Hill Companies Inc. All rights reserved. 1-3 LO 1 Relevant Cost Information Relevant Irrelevant Differential Cost -- will differ Allocated Cost -- a common cost that according to alternative activities has been arbitrarily assigned to a being considered. product or activity. Opportunity Cost -- income foregone Sunk Cost -- has already been incurred by choosing one alternative over and will not change. another. McGraw Hill Irwin 16 3 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-4 LO 3 The Special Pricing Decision The decision to accept additional The decision to accept additional business should be based on business should be based on incremental costs and incremental incremental costs and incremental revenues. revenues. Incremental amounts are those Incremental amounts are those amounts that occur if the company amounts that occur if the company decides to accept the new decides to accept the new business. business. McGraw Hill Irwin 16 4 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-5 LO 3 The Make or Buy Decision Should I continue to make the part or should I buy it McGraw Hill Irwin 16 5 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-6 LO 3 The Make or Buy Decision The relevant cost of making a component is the cost that can be avoided by buying the component from an outside supplier. Decision rule Costs avoided must be greater than outside supplier s price to consider buying the component. McGraw Hill Irwin 16 6 2008 The McGraw Hill Companies Inc. All Rights Reserved. 1-7 LO 3 Short-Term Allocation of Scarce Resources Managers often face the problem of deciding

• Kế toán - Kiểm toán
• Lecture Accounting
• Financial accounting
• Managerial accounting
• Accounting information
• Decision making
• Costs for decision making
• Lecture Financial accounting
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
• Error corrections
• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions