Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.3Q
“All future costs are relevant.” Do you agree? Why?
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All future costs are relevant in decision making.” Do you agree? Explain.
Besides the dollar cost, what other costs should you consider when comparingalternative solutions to a problem or goal?
Label each of the following statements as either true (“T”) or false (“F”). A sunk cost will change with a future course of action.
Chapter 11 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
Ch. 11 - Prob. 11.1QCh. 11 - Define relevant costs. Why are historical costs...Ch. 11 - All future costs are relevant. Do you agree? Why?Ch. 11 - Distinguish between quantitative and qualitative...Ch. 11 - Describe two potential problems that should be...Ch. 11 - Variable costs are always relevant, and fixed...Ch. 11 - A component part should be purchased whenever the...Ch. 11 - Prob. 11.8QCh. 11 - Managers should always buy inventory in quantities...Ch. 11 - Management should always maximize sales of the...
Ch. 11 - Prob. 11.11QCh. 11 - Cost written off as depreciation on equipment...Ch. 11 - Managers will always choose the alternative that...Ch. 11 - Prob. 11.14QCh. 11 - Prob. 11.15QCh. 11 - Prob. 11.16ECh. 11 - Prob. 11.17ECh. 11 - Prob. 11.18ECh. 11 - Prob. 11.19ECh. 11 - Prob. 11.20ECh. 11 - Prob. 11.21ECh. 11 - Prob. 11.22ECh. 11 - Prob. 11.23ECh. 11 - Prob. 11.24ECh. 11 - Prob. 11.25ECh. 11 - Prob. 11.26ECh. 11 - Prob. 11.27ECh. 11 - Prob. 11.28ECh. 11 - Prob. 11.29PCh. 11 - Prob. 11.30PCh. 11 - Prob. 11.31PCh. 11 - Prob. 11.32PCh. 11 - Prob. 11.33PCh. 11 - Prob. 11.34PCh. 11 - Prob. 11.35PCh. 11 - Prob. 11.36PCh. 11 - Prob. 11.37PCh. 11 - Prob. 11.38PCh. 11 - Prob. 11.39PCh. 11 - Prob. 11.40PCh. 11 - Prob. 11.41PCh. 11 - Prob. 11.42PCh. 11 - Prob. 11.43PCh. 11 - Prob. 11.44PCh. 11 - Prob. 11.45P
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- Give an example of an irrelevant future cost. Why is it irrelevant?arrow_forwardSunk costs are easy to spot - they're simply the fixed costs associated with a decision." Do you agree? Explain.arrow_forwardSunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree? Please explain the reasoning for your answer.arrow_forward
- “Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree? Why?arrow_forwardHow can we determine the equivalent benefits as well as the equivalent costs.?arrow_forwardWill the payback period, NPV, and IRR always lead to the same decision? Why or why not? If not, which one should be used?arrow_forward
- Discuss the advantages and disadvantages of the Net present valuearrow_forwardWhich of the following is an irrelevant cost? Group of answer choices An avoidable cost An incremental cost A sunk cost An opportunity costarrow_forwardOutline any problems you are aware of associated with the discounting of future costs and benefits in Cost Benefit Analysis.arrow_forward
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