Study Plan: Relevant Costing for Managers
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 |
- 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.
- 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.
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