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Unformatted text preview: As you can see, management accounting begins to overlap with operations research and linear programming, which are covered in other core courses. Incentive issues. How do you get your employees to consider the relevant costs? The right thing to do is not necessarily what managers will do. Pitfalls. Common mistakes include: presuming all variable costs are relevant, presuming all xed costs are irrelevant, unitizing xed costs over the wrong volume, and considering an inappropriate time horizon. c Steven Huddart, 20012008. www.personal.psu.edu/sjh11 ACCTG 211 Relevant Costs Recap Common situations where relevant cost analysis is useful: make or buy, special order, and product emphasis. Page 2...
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