10.1: Chapter 10 Study Plan
- Page ID
- 26114
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Study Plan: Relevant Costing for Managers
Knowledge Targets
I can define the following terms as they relate to our unit:
| Avoidable Cost | Constraint | Make or Buy | Differential Cost |
| Differential Revenue | Joint Product | Joint Cost | Opportunity Cost |
| Sunk Cost | Relevant Benefit | Relevant Cost | Sells or Process further |
| Special Order | Split Off Point | Constrained Resource |
Reasoning Targets
- I can identify costs as relevant, avoidable, opportunity or sunk cost.
- I can classify costs as relevant or not relevant.
- I can determine value and use of a constrained resource.
Skill Targets
- I can prepare an analysis showing if a product line or business segment should be dropped or added.
- I can prepare make or buy analysis.
- I can prepare analysis showing whether a special order should be accepted or rejected.
- I can prepare an analysis showing whether a joint product should be sold at the split off point or processed further.
Click Relevant Costs for a printable copy.