tailieunhanh - Lecture Survey of accounting (3/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. | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 13: Relevant Information for Special Decisions 4- Learning Objectives Identify the characteristics of relevant information. Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how these costs affect decision making. Make appropriate special order decisions. Make appropriate outsourcing decisions. Make appropriate segment elimination decisions. Make appropriate asset replacement decisions. In this chapter, the learning objectives are: Identify the characteristics of relevant information. Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how these costs affect decision making. Make appropriate special order decisions. Make appropriate outsourcing decisions. Make appropriate segment elimination decisions. Make appropriate asset replacement decisions. 4- Relevant Information Two primary | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 13: Relevant Information for Special Decisions 4- Learning Objectives Identify the characteristics of relevant information. Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how these costs affect decision making. Make appropriate special order decisions. Make appropriate outsourcing decisions. Make appropriate segment elimination decisions. Make appropriate asset replacement decisions. In this chapter, the learning objectives are: Identify the characteristics of relevant information. Distinguish between unit-level, batch-level, product-level, and facility-level costs and understand how these costs affect decision making. Make appropriate special order decisions. Make appropriate outsourcing decisions. Make appropriate segment elimination decisions. Make appropriate asset replacement decisions. 4- Relevant Information Two primary characteristics distinguish relevant from useless information: Relevant information differs among the alternatives under consideration. Relevant information is future oriented. 4- Two primary characteristics distinguish relevant from useless information. Specifically, relevant information (1) differs among the alternatives under consideration and (2) is future oriented. Sunk Cost A sunk cost has been incurred in a past transaction and cannot be changed, it is not relevant for making current decisions. Why are you complaining? You have two offers at or near the market value, so the $25,000 is not relevant – it’s a sunk cost. Wish I hadn’t bought that car! It cost me $25,000, and now its worth only $19,000. I really don’t want to take a loss on it but I need the cash more than I need the car! 4- Historical costs are frequently called sunk costs. Because sunk costs have been incurred in past transactions, they cannot be changed and are not relevant for making current decisions. .

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• 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