Learning Material Relevant Cost Part 1 Practice ProblemDirection: Identify whether the following costs are relevant or irrelevant:_1. Research and development costs incurred in the prior months2. Contribution margin of the decrease in regular sales for accepting a special order3. Alternative usage of plant space (rentals to others for a fee, production of new products,etc.)4. Cost of inventory acquired several years ago.5. Joint production costs incurred_6. Depreciation of equipment used in production_7. Salary of a manager of a product line that is being considered to be dropped.8. Rental costs of additional space for the production of a new product_9. Cost of special device that is necessary if a special order is accepted.10. Direct materials, direct labor and variable overhead incurred on units produced lastperiod11. Further processing costs12. Allocated main office expenses to different departments13. Prime costs of units ordered by one-time customers14. Current market value of old equipment being considered for disposalwhich special_15. Rental of Factory being used by the company for regular productionorders will likewise be produced.

solution Note Dear student as per bartleby guideline we are required to answer the first 3 subparts…

Direction: Identify whether the following costs are relevant or irrelevant: _1. Research and development costs incurred in the prior months 2. Contribution margin of the decrease in regular sales for accepting a special order 3. Alternative usage of plant space (rentals to others for a fee, production of new products etc.)

Direction: Identify whether the following costs are relevant or irrelevant: _1. Research and development costs incurred in the prior months 2. Contribution margin of the decrease in regular sales for accepting a special order 3. Alternative usage of plant space (rentals to others for a fee, production of new products etc.)

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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