1. Relevant of differential cost analysis a takes all variable and fixed costs into account to analyze decision alternatives b. considers only variable costs as they change with each decision alternative C. considers the change in reported net income for each alternative to arrive at the optimum decision for the company d. considers all variable and fixed costs as they change with each decision alternatives

1. Relevant of differential cost analysis a takes all variable and fixed costs into account to analyze decision alternatives b. considers only variable costs as they change with each decision alternative C. considers the change in reported net income for each alternative to arrive at the optimum decision for the company d. considers all variable and fixed costs as they change with each decision alternatives

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Relevant of differential cost analysis takes all variable and fixed costs into account to analyze decision alternatives considers only variable costs as they change with each decision alternative considers the change in reported net income for each alternative to arrive at the optimum decision for the company considers all variable and fixed costs as they change with each decision alternatives The term that refers to costs incurred in the past that are not relevant to a future decision is full absorption cost sunk cost incurred marginal cost under allocated indirect cost
Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O a. Relevant costs. O b. Sunk costs. O c. Product costs. O d. Period costs. e. None of the answers are correct
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Relevant Cost for non-routine decision making: Sell or Process Further How much is the incremental profit/loss for product A, B, C
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