FINANCIAL & MANAG ACCT (CH. 1 - 24 EBOOK
9th Edition
ISBN: 9781264511068
Author: Wild
Publisher: MCG
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Question
Chapter 23, Problem 1BTN
To determine
Relevant costs:
Relevant costs are those costs in any managerial decision-making process that will influence the flow of capital in the future. Hence, such costs decide whether the decision is taken forward or rejected.
1.
The contribution margin per unit on the order as determined by the controller.
2.
To determine
The contribution margin per unit on the order as determined by the salesperson of he takes a lower commission.
3.
To determine
Whether C must accept the special order and the factors the management must consider.
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