machine a cost is not relevant if it

Relevant Cost vs. Irrelevant Cost – All You Need to Know

2021-6-23  Also, the cost of the old machine is irrelevant (a sunk cost). The fixed cost of $20,000 is also not relevant as a company would have to incur it whether or not it buys

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Multiple Choice Questions - Harper College

2021-11-3  A cost not relevant to deciding whether to purchase a new machine is: a) The cost of the new machine b) Lower maintenance costs for the new machine c) The cost of the old machine d) Additional training required for operating the new machine 2. A cost incurred in the past that cannot be changed by any future action ...

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Ch12 (1).pdf - CHAPTER 12 RELEVANT COSTING MULTIPLE

Relevant costs are EASY. 4. Which of the following is the least likely to be a relevant item in deciding whether to replace an old machine? EASY. 12–1. 12–2 Chapter 12 Relevant Costing 5. If a cost is irrelevant to a decision, the cost could not be a. a sunk cost. b. a future cost. c. a variable cost. d. an incremental cost.

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Flashcards - Chapter 11 - FreezingBlue

2013-12-5  machine, the following costs are all relevant EXCEPT the: A. $60,000 cost of the old machine. 59. Relevant costs for a make-or-buy decision for a component part include all of the following EXCEPT: D. Special machinery for the part that has no resale value. 60. When deciding whether to discontinue a segment of a business, managers should

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Accy 309 Test 3 Chapter 10 Flashcards Quizlet

Relevant costs are A. all fixed and variable costs. ... B. acquisition cost of the old machine. C. operating costs of the new machine. ... D. not be considered since opportunity costs are not part of the accounting records. be considered to decrease the price of units purchased from suppliers.

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Revisionary Test Paper June 2018 - THE INSTITUTE OF

2018-3-20  machine and relevant data are shown below. ‘X’ ` ‘Y’ ` Purchase price 19000 13,000 Trade-in value 3000 3,000 Annual repair costs 2000 2,600 Overhaul costs (at year 8) 4000 (at year 4) 2,000 Estimated financing costs averaged over machine life 10% p.a. 10% p.a.

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ACCT 2460 Relevant Cost and Decision-Making Quiz

Five years ago, Robert Johnson Company purchased a machine for $100,000. This machine suddenly stopped working. The company is debating whether to repair the machine or simply replace the old machine with a new one. Based on this decision, the initial $100,000 spent on the old machine is considered as a (an): relevant cost. sunk cost.

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The Relevant Range and Nonlinear Costs - GitHub Pages

2021-8-26  When costs are estimated for a specific level of activity, the assumption is that the activity level is within the relevant range. Costs are estimated assuming that they are linear. Both assumptions are reasonable as long as the relevant range is clearly

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ACCY 309 Chapter 11 Flashcards Quizlet

A) Past costs are helpful when making predictions but not relevant when making decisions. B) Different alternatives can be compared by examining differences in expected future revenues and expected total future costs. C) significant past

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Relevant costs ACCA Global

2021-11-23  Therefore, the machine running costs will not change, so are not relevant to the decision. Material - if the buy-in option is accepted, the material cost increases from $12 to $15 per unit. Production volume – this can increase by 50% because currently each item takes 0.5 hours in Operation 2, but 0.25 hours per unit will be released by ...

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15.963 Management Accounting and Control

2020-12-30  Cost of new machine = $600,000 Relevant, because it is an expected future cost that will occur only if the machine is purchased. 15.963 [Spring 2007] Managerial Accounting Control 12 . Replacement Decisions

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Relevant costing

Relevant cost of non-current assets . The relevant costs associated with non-current assets, such as plant and machinery, are determined in a similar way to the relevant costs of materials. If plant and machinery is to be replaced at the end of its useful life, then

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Relevant and Irrelevant Costs - Accountingverse

2021-7-13  Costs, when classified according to usefulness in decision-making, may be classified into relevant and irrelevant costs. Relevant costs refer to those that will differ between different alternatives. Irrelevant costs are those that will not cause any difference when choosing one

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relevant costing - OpenTuition

2021-5-30  Redundancy cost are estimated to be $50000 now or 60,000 in one year time which one is a relevant cost to be considered as a relevant cost. Secondly if the current contract is lost then machinery sold for 6000 now or 4500 in one year which one is relevant to the decision and do we add the machine cost as a positive number or negative? Thanks ...

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Solved > 31. Which of the following is NOT relevant ...

31. Which of the following is NOT relevant in a make-or-buy decision about a part the entity uses in some of its products? a. The reliability of the outside supplier. b. The alternative uses of owned equipment used to make the part. c. The outside supplier's per-unit variable cost to make the part. d.

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ACCT 2460 Relevant Cost and Decision-Making Quiz

Five years ago, Robert Johnson Company purchased a machine for $100,000. This machine suddenly stopped working. The company is debating whether to repair the machine or simply replace the old machine with a new one. Based on this decision, the initial $100,000 spent on the old machine is considered as a (an): relevant cost. sunk cost.

Read More

The Relevant Range and Nonlinear Costs - GitHub Pages

2021-8-26  When costs are estimated for a specific level of activity, the assumption is that the activity level is within the relevant range. Costs are estimated assuming that they are linear. Both assumptions are reasonable as long as the relevant range is clearly identified, and the linearity assumption does not significantly distort the resulting cost ...

Read More

Relevant Cost Of Labor Accounting Simplified

Fixed costs which do not change as a result of the change in labor hours consumed should not be considered as relevant. For instance, if direct labor is guaranteed idle time pay equal to 60% of the normal pay during periods of lower demand, the relevant cost

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Differential Analysis Decisions (7 Types)

2021-11-27  (a) Cost of old machine — past (historical) cost. (b) Book value and gain or loss on disposal — both involve depreciation and original cost (that is, sunk cost). (c) Annual revenue — this would be relevant (as it represents a future cash inflow) if it differs between alternatives.

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Relevant costs ACCA Global

2021-11-23  Therefore, the machine running costs will not change, so are not relevant to the decision. Material - if the buy-in option is accepted, the material cost increases from $12 to $15 per unit. Production volume – this can increase by 50% because currently each item takes 0.5 hours in Operation 2, but 0.25 hours per unit will be released by ...

Read More

15.963 Management Accounting and Control

2020-12-30  Cost of new machine = $600,000 Relevant, because it is an expected future cost that will occur only if the machine is purchased. 15.963 [Spring 2007] Managerial Accounting Control 12 . Replacement Decisions

Read More

Relevant costing

Relevant cost of non-current assets . The relevant costs associated with non-current assets, such as plant and machinery, are determined in a similar way to the relevant costs of materials. If plant and machinery is to be replaced at the end of its useful life, then

Read More

Relevant and Irrelevant Costs - Accountingverse

2021-7-13  Costs, when classified according to usefulness in decision-making, may be classified into relevant and irrelevant costs. Relevant costs refer to those that will differ between different alternatives. Irrelevant costs are those that will not cause any difference when choosing one

Read More

relevant costing - OpenTuition

2021-5-30  Redundancy cost are estimated to be $50000 now or 60,000 in one year time which one is a relevant cost to be considered as a relevant cost. Secondly if the current contract is lost then machinery sold for 6000 now or 4500 in one year which one is relevant to the decision and do we add the machine cost as a positive number or negative? Thanks ...

Read More

Solved > 31. Which of the following is NOT relevant ...

31. Which of the following is NOT relevant in a make-or-buy decision about a part the entity uses in some of its products? a. The reliability of the outside supplier. b. The alternative uses of owned equipment used to make the part. c. The outside supplier's per-unit variable cost to make the part. d.

Read More

The Relevant Range and Nonlinear Costs - GitHub Pages

2021-8-26  When costs are estimated for a specific level of activity, the assumption is that the activity level is within the relevant range. Costs are estimated assuming that they are linear. Both assumptions are reasonable as long as the relevant range is clearly identified, and the linearity assumption does not significantly distort the resulting cost ...

Read More

ACCT 2460 Relevant Cost and Decision-Making Quiz

Five years ago, Robert Johnson Company purchased a machine for $100,000. This machine suddenly stopped working. The company is debating whether to repair the machine or simply replace the old machine with a new one. Based on this decision, the initial $100,000 spent on the old machine is considered as a (an): relevant cost. sunk cost.

Read More

Relevant Cost Of Labor Accounting Simplified

Fixed costs which do not change as a result of the change in labor hours consumed should not be considered as relevant. For instance, if direct labor is guaranteed idle time pay equal to 60% of the normal pay during periods of lower demand, the relevant cost

Read More

Costs Influencing Decision-Making and Planning (9 Types)

2021-11-27  If a cost increases, decreases, appears or disappears as different alternatives are compared, it is a relevant cost. On the contrary, irrelevant costs are those costs which remain the same and not affected by the decision whatever alternative is chosen. Irrelevant costs do not mean that such costs are forgotten or that such costs need not be ...

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