Ch07 adj Werner Jones Mgt Acctg PP97 2003

2009 michael werner and kumen jones introduction to

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Unformatted text preview: t differ between alternatives. ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Werner/Jones 7 ­ 6 Quantitative or Qualitative? LO3 Describe the qualitative factors that decision makers should consider when making a business decision. • Quantitative factors can be expressed Quantitative as a number. • Qualitative factors cannot be expressed Qualitative numerically and must be described in words. • Most management decisions require the Most consideration of both quantitative and qualitative factors. ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Werner/Jones 7 ­ 7 LO3 Determining Relevant Cost and Benefit Is the item a future cost or benefit? No The cost or benefit is not a relevant item. Yes Does the cost or benefit differ from decision alternatives? No The cost or benefit is not a relevant item. Yes The cost or benefit is a relevant item. ©2009 Michael Werner and Kumen Jones, Introduction to Management Accounting, 3e Werner/Jones 7 ­ 8 Equipment Replacement – Gather Relevant Information LO4 Use accounting information to determin...
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