
1.
Relevant Cost:
Relevant cost is the avoidable cost which incurred at the time of the decision making process of the management. It means that the cost related to the decision making process is called relevant cost.
To identify: Relevant cost and benefits
2.
Irrelevant Cost:
Irrelevant cost is that cost which does not get affected by the decision making process of the management because this cost are those which already has been incurred.
To identify: Irrelevant cost information
3.
To identify: Whether they should purchase the new oven or not.
4.
To identify: Whether there is conflict between decision model and incentive of the manager.
5.
To identify: the situation when the purchasing price of the new oven and continuing to use the old oven.

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Chapter 11 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
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