Questions from Cost Management

Q: What is the relevant cost when determining whether to sell a product

What is the relevant cost when determining whether to sell a product before or after additional processing?

Q: List four to six strategic factors that are often important in the

List four to six strategic factors that are often important in the make-or-buy decision.

Q: How do short-term evaluations affect a manager's incentives and performance

How do short-term evaluations affect a manager's incentives and performance?

Q: List for or five important limitations of relevant cost analysis.

List for or five important limitations of relevant cost analysis.

Q: How do strategic factors affect the proper use of relevant cost analysis

How do strategic factors affect the proper use of relevant cost analysis?

Q: List some of the behavioral, implementation, and legal problems to

List some of the behavioral, implementation, and legal problems to be anticipated in the use of relevant cost analysis.

Q: A company purchases an asset that costs $10,000.

A company purchases an asset that costs $10,000. This asset qualifies as 3-year property under MACRS. The company uses an after-tax discount rate of 12% and faces a 40% income tax rate. (a) Use the a...

Q: How does the presence of one production constraint affect the relevant cost

How does the presence of one production constraint affect the relevant cost analysis model? Two or more production constraints?

Q: What are the distinguishing characteristics of capital budgeting decisions?

What are the distinguishing characteristics of capital budgeting decisions?

Q: “Depreciation expenses have no effect on cash flows and, therefore

“Depreciation expenses have no effect on cash flows and, therefore, are not relevant in capital expenditure analysis.” Do you agree? Why or why not?