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Business LibreTexts

10.1: Chapter 10 Study Plan

  • Page ID
  • 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.