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OBJU6CH13_09 - should be sold at split-off point or...

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INTRODUCTORY COST ACCOUNTING UNIT 6 - CHAPTER 12: Relevant Revenues, Relevant Costs, and the Decision Process LEARNING OUTCOMES : 1. Define a relevant cost and distinguish between relevant and irrelevant cost decisions. 2. Prepare an analysis whether to keep or replace old equipment and explain why book value is irrelevant. 3. Prepare an analysis showing whether a special order should be accepted or rejected. 4. Prepare an analysis showing whether to keep or drop a product or component. 5. Prepare an analysis whether to make or buy a product or component. 6. Determine the most profitable use of a resource when there is a constraining factor. 7. Prepare an analysis showing whether joint products
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Unformatted text preview: should be sold at split-off point or processed further. 8. Describe the effect of activity-based costing on relevant cost analysis. 9. Define the following terms and understand how they relate to relevant cost decisions: opportunity cost, differential cost, avoidable cost, sunk cost, bottleneck. Demonstration and Assignment Material: Accept/Reject a Special Order, E12-4, E12-10, P12-27; Make or buy: E12-3; E12-9; E12-16; P12-23; P12-26; Keep or drop a product line: E12-2; E12-8; E12-15; P12-20; P12-22; P12-25; Sell as is or process further: E12-6; E12-12; P12-21, P12-29; Constraining Factor: E12-5; E12-11; E12-13; E12-28; RF rev. 11/09...
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