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Managerial Accounting
Introduction to Managerial Accounting
Jeannie M. Folk
Ray H. Garrison
Eric Noreen
Relevant Costs for Decision Making

Learning Objectives

After studying Chapter 11, you should be able to:

1

Distinguish between relevant and irrelevant costs in decisions.

2

Prepare an analysis showing whether to keep or replace old equipment.

3

Prepare an analysis showing whether a product line or other organizational segment should be dropped or retained.

4

Prepare a well-organized make or buy analysis.

5

Prepare an analysis showing whether a special order should be accepted.

6

Determine the most profitable use of a constrained resource.




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