Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.6Q
“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree? Why?
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‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs according to their nature and usage. Variable costs are controllable, on contrary fixed costs are not’. Do you agree with this statement? Why?
‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs according to their nature and usage. Variable costs are controllable, on contrary fixed costs are not’. Do you agree with this statement? Justify.
Sunk costs are easy to spot - they're simply the fixed costs associated with a decision." Do you agree? Explain.
Chapter 11 Solutions
Cost Accounting (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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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Are variable costs always relevant costs? Explain.arrow_forwardWhat two arguments tend to justify classifying all costs as either fixed or variable even though individual costs might not behave exactly as classified?arrow_forwardWhat is the basic premise underlying the high-low method of analyzing semivariable costs?arrow_forward
- “There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you agree? What is the implication of your answer for CVP analysis?arrow_forward“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do youagree? Explainarrow_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
- "ABC systems may result in misallocation of indirect costs."Do you agree? Give reasons for your answerarrow_forwardWhat is the relevant range? How does fixed costs and variable costs behave outside the relevant range?arrow_forwardWhich of the following would not be relevant in a make or buy decision? Unavoidable variable costs Incremental fixed costs Avoidable fixed costs Opportunity costsarrow_forward
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