Bundle: Survey of Accounting, Loose-Leaf Version, 8th + CengageNOWv2, 1 term Printed Access Card
Question
Book Icon
Chapter 12, Problem 7CDQ
To determine

Concept Introduction:

Decision making plays an important role in the management. The decisions taken by managers are called managerial decisions. Managerial Decisions are decisions taken by managers for the operations of a firm. These decisions include setting target growth rates, hiring or firing employees, and deciding what products to sell. Manager's decisions are taken on the basis of quantitative as well as the qualitative measures. The managerial decision includes the decisions like make or buy, accept or reject new offers, sell or further process etc. These decisions are taken on the basis of relevant costs.

Relevant costs are the costs that are relevant for any decision making. Relevant costs are helpful for take managerial decisions like make or buy, accept or reject new offers, sell or further process etc.

Two basic types of the relevant costs are as follows:

  1. Out-of-pocket costs
  2. Opportunity costs

To Indicate:

The financial consideration in taking the decision to eliminate a store

Blurred answer
Students have asked these similar questions
Omega manufacturing uses weighted average solution this general accounting question
The Niba Department started the month with a beginning Work in Process inventory of $15,000. During the month, it was assigned the following costs: direct materials, $120,000; direct labor, $40,000; overhead allocated at the rate of 20% of direct labor cost. Inventory with a cost of $160,000 was transferred to finished goods. What was the ending balance of Work in Process inventory for the department? What is solution?
The Niba Department started the month with a beginning Work in Process inventory of $15,000. During the month, it was assigned the following costs: direct materials, $120,000; direct labor, $40,000; overhead allocated at the rate of 20% of direct labor cost. Inventory with a cost of $160,000 was transferred to finished goods. What was the ending balance of Work in Process inventory for the department?

Chapter 12 Solutions

Bundle: Survey of Accounting, Loose-Leaf Version, 8th + CengageNOWv2, 1 term Printed Access Card

Ch. 12 - A company fabricates a component at a cost of...Ch. 12 - Prob. 7CDQCh. 12 - Prob. 8CDQCh. 12 - Prob. 9CDQCh. 12 - Prob. 10CDQCh. 12 - Prob. 11CDQCh. 12 - Prob. 12CDQCh. 12 - Lease or sell decision Orwell Industries is...Ch. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Make-or-buy decision Watts Technologies Company...Ch. 12 - Make-or-buy decision Wisconsin Arts of Milwaukee...Ch. 12 - Machine replacement decision Creekside Products...Ch. 12 - Differential analysis report for machine...Ch. 12 - Sell or process further St. Paul Lumber Company...Ch. 12 - Prob. 12.11ECh. 12 - Decision on accepting additional business Madison...Ch. 12 - Accepting business at a special price Palomar...Ch. 12 - Prob. 12.14ECh. 12 - Total cost concept of product costing Willis...Ch. 12 - Product cost concept of product pricing Based on...Ch. 12 - Variable cost concept of product pricing Based on...Ch. 12 - Target costing Toyota Motor Corporation (TM) uses...Ch. 12 - Differential analysis report involving opportunity...Ch. 12 - Prob. 12.1.2PCh. 12 - Prob. 12.1.3PCh. 12 - Differential analysis report for machine...Ch. 12 - Differential analysis report for machine...Ch. 12 - Differential analysis report for sales promotion...Ch. 12 - Differential analysis report for sales promotion...Ch. 12 - Differential analysis report for further...Ch. 12 - Prob. 12.4.2PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.5.2PCh. 12 - Prob. 12.5.3PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.5.5PCh. 12 - Product pricing using the cost-plus approach...Ch. 12 - Prob. 12.1MBACh. 12 - Prob. 12.2MBACh. 12 - Prob. 12.3.1MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.3.3MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.4.2MBACh. 12 - Contribution margin per constraint Using the data...Ch. 12 - Prob. 12.5.1MBACh. 12 - Prob. 12.5.2MBACh. 12 - Prob. 12.5.3MBACh. 12 - Product pricing Bev Frazier is a cost accountant...Ch. 12 - Prob. 12.2CCh. 12 - Prob. 12.3CCh. 12 - Cost-plus and target costing concepts The...Ch. 12 - Cost-plus and target costing concepts The...
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Text book image
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Text book image
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Personal Finance
Finance
ISBN:9781337669214
Author:GARMAN
Publisher:Cengage