ACTG2020_Week5 2014 Ch12CMD (1)

Determine the unit contribution margin cm times the

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Unformatted text preview: contribution margin (CM) times the number of units (Q) plus total fixed costs of each alternative. Setup an equation with each alternative on opposite sides of the equal sign. Solve for Q, the indifference point. ACTG 2020 LO 8 4 Accounting 2020 Week 5 - Chapter 12 Relevant Costs for Decision Making The Managerial Accountant’s Role in Decision Making Managerial Managerial Accountant Accountant Designs and implements Designs and implements accounting information accounting information system system Cross-functional Cross-functional management teams management teams who make who make production, marketing, production, marketing, and finance decisions and finance decisions Make substantive Make substantive economic decisions economic decisions affecting operations affecting operations 6 The Decision-Making Process 1. Clarify the Decision Problem 2. Specify the Criterion 3. Identify the Alternatives Qualitative Qualitative Considerations Considerations 4. Develop a Decision Model 5. Collect the Data 6. Make...
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This note was uploaded on 03/28/2014 for the course ACTG 2020 taught by Professor Lizfarrel during the Spring '11 term at York University.

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