Studyguide for Managerial Accounting by Balakrishnan, Ramji, ISBN 9781118385388 notes

Relevent Costs Notes - Managerial Acocunting Last document update:   ago

Questions are provided with answers: 1. We know that the controllable benefits less the controllable costs of an option equal its value. Can focusing only on relevant costs and benefits ever give us value? 2. Many decisions often involve qualitative factors. How can you reconcile this fact with the concept of relevant costs? 3. Every relevant cost is controllable. However, not all controllable costs are relevant. Why are both statements correct? 3. When might the magnitude of a sunk cost be rele...