a cost is not relevant if it Dec

Revisionary Test Paper Paper-15 December 2018

Revisionary Test Paper_Paper-15_December 2018 ... The relevant cost of material D to be included in the costing of the special order is nearest to: (a) `3,990 (b) `4,050 (c) `10,000 (d) `10,300 (x) P operates an activity based costing (ABC) system to attribute its overhead costs to cost objects. ...

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chAPTER 6 MULTIPLE CHOICE Flashcards by Lisa Mitchell ...

c. Total variable costs remain constant over the relevant range. d. Cost behaviour can change as long as total costs remain the same at all activity levels. b 3 37. Which of the following is an underlying assumption of CVP analysis? a. Factors other than changes in activity may affect costs. b. Cost classifications are reasonably accurate.

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2019ACCA《F2》 …

The supervision cost would be incurred anyway and is not a relevant cost, since an existing manager is used. Similarly, the salaries of the existing employees are not relevant. The lowest cost option is to retrain the existing employees, at a total relevant cost of $115,000. Therefore the correct answer is A.

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Cost of Inventories (IAS 2) • IFRScommunity.com

Such an adjustment results in relevant fixed production overheads recognised immediately in P/L, not in the cost of inventories (IAS 2.13). Note that allocating production overheads is required by IAS 2, i.e. entity cannot decide to exclude them from the cost of inventory.

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ANSWERS TO QUESTIONS

4. Relevance and reliability are the two primary qualities of useful accounting information. For informa-tion to be relevant, it should have predictive value or feedback value, and it must be presented on a timely basis. Relevant information has a bearing on a decision …

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COST AND MANAGEMENT ACCOUNTING - ICSI

(d) Cost Centres, Profit Centres and Investment Centres . Q.4. Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for …

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CHAPTER 2 AN INTRODUCTION TO COST TERMS AND …

EA 2-1 CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 Define cost object and give three examples. A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, …

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Accounting 602 Final Flashcards | Quizlet

Relevant Costs | Accounting for Managers

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Answers - ACCA Global

Decrease in financing cost = 801,370 x 0·06 = $48,082 Net cost of proposed changes in receivables policy = 75,000 – 48,082 = $26,918 Comment The proposed changes in trade receivables policy are not financially acceptable. However, if the trade terms offered are

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Relevant cost definition — AccountingTools

However, the cost of corporate overhead is not a relevant cost, since it will not change as a result of this decision. As another example, if ABC wants to close its medieval book division entirely, the only relevant costs will be those costs specifically eliminated as a result of the decision.

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Treasury stock - cost method - explanation, journal ...

Journal entry: Under cost method, the treasury stock account is debited and cash account is credited with the amount paid for acquiring the shares of treasury stock (i.e., the cost of treasury stock). The par value of shares is ignored for recording the purchase of treasury stock under cost method. For example, Eastern company repurchases 2,500 ...

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Chapter 5 : Relevant Costing For Decision Making

The cost of the car is a sunk cost and is not relevant to the current decision. However, the cost of gasoline is clearly relevant if she decides to drive. If she takes the drive the cost would now be incurred, so it varies depending on the decision. The annual cost of insurance is not relevant. It will remain the same if she drives or takes the ...

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Special order decisions – Accounting In Focus

Identify the relevant costs. In order to identify the relevant costs associated with a special order decision, we must look at the existing costs to determine which costs will be paid if the order is accepted. Previously incurred fixed costs are never relevant. The only fixed costs that should be considered are fixed costs that are incurred ...

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3 Examples of a Relevant Cost - Simplicable

3 Examples of a Relevant Cost. A relevant cost is a future cash cost that is relevant to a particular decision. This is used to exclude sunk costs, committed costs and non-cash costs from decision making as considering these costs is typically illogical. The …

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1.5 The Statement of Cost of Goods Manufactured ...

The statement of cost of goods manufactured supports the cost of goods sold figure on the income statement. The two most important numbers on this statement are the total manufacturing cost and the cost of goods manufactured. Be careful not to confuse the terms total manufacturing cost and cost of goods manufactured with each other or with the cost of goods sold.

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(PDF) ACCA F7 - Financial Reporting (INT) Study Text ...

Academia.edu is a platform for academics to share research papers.

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Relevant Cost vs. Irrelevant Cost – All You Need to Know

The fixed cost of $20,000 is also not relevant as a company would have to incur it whether or not it buys a new machine. Here depreciation of New Machine, say $4500 will be relevant cost. Company A will incur this cost only if it decides to buy the new machine. Another relevant cost will be the variable cost as Company A will save $12,000 ...

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1 Aggregate Production Planning - Columbia University

Costs relevant to aggregate production planning: (a) Basic production costs: material costs, direct labor costs, and overhead costs. It is customary ... displayed in Table 5 and has an optimal cost of $20,193. Dec Jan Feb Mar Apr May Jun Man-hours R Labor 120 130 120 150 100 100 Man-hours O …

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COSTCOST AND AND AND MANAGEMENT MANAGEMENT ...

COST AND MANAGEMENT ACCOUNTING ... relevant to the subject. In all study lessons the requisite theoretical framework for understanding the ... candidates will be implemented w.e.f. December, 2015 session of examination in the ratio of 1:4, i.e. deduction of one (1) mark for every four (4) wrong answers and total marks obtained by the candidates ...

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Accounting 242 exam 2 Flashcards | Quizlet

The cost to buy lunch at the deli is not relevant because it has not yet been incurred. D. ... Oakton Furniture provided the following information relevant to its sales for December 2013 and the first quarter of 2014 Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the ...

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How to Perform a Cost Analysis

Differential cost is a cost that is present under one kind of alternative or set of conditions, but not under another. Differential costs may be variable or fixed. Incremental costs (sometimes referred to as "differential costs") are increases or decreases in cost, when moving from one alternative to another.

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United Airlines

United Airlines - Airline Tickets, Travel Deals and Flights If you're seeing this message, that means JavaScript has been disabled on your browser, please enable JS ...

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Identify and Apply Basic Cost Behavior Patterns ...

9 Identify and Apply Basic Cost Behavior Patterns . Now that we have identified the three key types of businesses, let's identify cost behaviors and apply them to the business environment. In managerial accounting, different companies use the term cost in different ways depending on how they will use the cost information. Different decisions require different costs classified in different ways.

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Solved Harrison Company determines that an opportunity ...

Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision. Which statement is true of the opportunity cost? (Points : 4)a)Should be added to the buy costsb)Should be subtracted from the make costsc)Should be added to the make costsd)Should be ignored if it does not involve a cash ...

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ACCA PM (F5) Past Papers: B2a. Deriving a Target Cost ...

You could see this question fully worked through if you join the classroom. B2abc. December 14 MCQ 15. The following are all steps in the implementation of the target costing process for a product: (1) Calculate the target cost. (2) Calculate the estimated current cost based on …

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Fixed Cost - What It Is And What's Its Importance?

Fixed Cost – What It Is And What's Its Importance. Fixed cost as the name suggests is the expense that does not change very frequently and is recurring. For instance, a company will have to pay a fixed rent every month irrespective of the revenue it generates. This cost to the company might not change under normal business circumstances.

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IAS 16 — Property, Plant and Equipment

IAS 16 outlines the accounting treatment for most types of property, plant and equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. IAS 16 was reissued in December 2003 and applies to annual …

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The classification of costs between relevant costs | Chegg.com

It has three divisions: hair care, skin care and dental care. Following is an extract from the financial statements for the year ending 31 December 2019: Question: The classification of costs between relevant costs and irrelevant costs is important in the context of managerial decision-making. Harmony Industries is a company that manufactures ...

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Excel IF AND OR Functions Explained • My Online Training Hub

Base cost to service up to 3 fire extinguishers is $45 Cost to service any additional fire extinguisher is $4.05. Trying to set up a formula that shows this. For example… # of extinguishers Total Service cost 3 $40.00 4 $44.05 (base cost of $40.00 + 4.05 for the additional unit)

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