Class Notes Chapter 8 - The University of Texas at Austin...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
The University of Texas at Austin McCombs School of Business, Business Foundations Program ACC 310F: Foundations of Accounting, Fall 2010 Class Notes – Chapter 8 Should We Cater an Event? A potential customer asked your lemonade company to help cater an upcoming event by providing beverages for 50 guests (2 cups per guest); the customer offers to pay you $30. You plan on using a “4, 2, 2” recipe which produces 12 cups per pitcher. If the event will not interfere with your regular business, would you agree to cater the event? Relevant Costs and Benefits Relevant cost Relevant benefit Sunk cost Product Costs (DM, DL, OH) Period Costs Variable Costs Fixed Costs Decision Making Retain or replace Special order Outsourcing (make or buy) Discontinue a business segment Qualitative Factors Customer satisfaction Product quality Employee morale Customer perceptions Page 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Practice Problems (Answers are posted in the Course Documents section of Blackboard)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Class Notes Chapter 8 - The University of Texas at Austin...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online