tailieunhanh - Lecture Financial and managerial accounting (2nd Edition): Chapter 21 - Weygandt, Kimmel, Kieso

Chapter 21 - Incremental analysis. This chapter’s objectives are to: Describe management’s decision-making process and incremental analysis, analyze the relevant costs in accepting an order at a special price, analyze the relevant costs in a make-or-buy decision,. | Learning Objectives Describe management’s decision-making process and incremental analysis. 1 Analyze the relevant costs in accepting an order at a special price. 2 Analyze the relevant costs in a make-or-buy decision. 3 Analyze the relevant costs in determining whether to sell or process materials further. 4 Analyze the relevant costs to be considered in repairing, retaining, or replacing equipment. 5 Incremental Analysis 21 Analyze the relevant costs in deciding whether to eliminate an unprofitable segment or product. 6 Making decisions is an important management function. Does not always follow a set pattern. Decisions vary in scope, urgency, and importance. Steps usually involved in process include: Illustration 21-1 Management’s decision-making process LEARNING OBJECTIVE Describe management’s decision-making process and incremental analysis. 1 LO 1 In making business decisions, Considers both financial and non-financial information. Financial information Revenues and costs, and Effect on overall profitability. Nonfinancial information Effect on employee turnover The environment Overall company image. Decision-Making Process LO 1 Decisions involve a choice among alternative actions. Process used to identify the financial data that change under alternative courses of action. Both costs and revenues may vary or Only revenues may vary or Only costs may vary Incremental Analysis Approach LO 1 Incremental revenue is $15,000 less under Alternative B. Incremental cost savings of $20,000 is realized. Alternative B produces $5,000 more net income. How Incremental Analysis Works Illustration 21-2 Basic approach in incremental analysis LO 1 Important concepts used in incremental analysis: Relevant cost. Opportunity cost. Sunk cost. How Incremental Analysis Works LO 1 Sometimes involves changes that seem contrary to intuition. Variable costs sometimes do not change under alternatives. Fixed costs sometimes change between alternatives. How Incremental Analysis Works LO 1 . | Learning Objectives Describe management’s decision-making process and incremental analysis. 1 Analyze the relevant costs in accepting an order at a special price. 2 Analyze the relevant costs in a make-or-buy decision. 3 Analyze the relevant costs in determining whether to sell or process materials further. 4 Analyze the relevant costs to be considered in repairing, retaining, or replacing equipment. 5 Incremental Analysis 21 Analyze the relevant costs in deciding whether to eliminate an unprofitable segment or product. 6 Making decisions is an important management function. Does not always follow a set pattern. Decisions vary in scope, urgency, and importance. Steps usually involved in process include: Illustration 21-1 Management’s decision-making process LEARNING OBJECTIVE Describe management’s decision-making process and incremental analysis. 1 LO 1 In making business decisions, Considers both financial and non-financial information. Financial information Revenues and costs, and .

• Kế toán - Kiểm toán
• Managerial accounting
• Financial and managerial accounting
• Incremental analysis
• Incremental analysis
• Make or buy decision
• Decision making process
• 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
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• 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