Home
Flashcards
Preview
ACCT729 - Chap 4
Home
Get App
Take Quiz
Create
What is a relevant cost?
Future costs that differ among competing decision alternatives.
What are irrelevant costs?
Future costs that do not differ among competing decision alternatives.
Are future revenues relevant or irrelevant?
Depends.
If revenues differ between alternatives - yes. If they don't, no.
What are outlay costs? Give an example of one.
- Outlay costs require future expenditures of cash or other resources.
- Example
: Suppose a firm is thinking about replacing a machine; the cost of a new machine would be a relevant outlay cost.
Author
Anonymous
ID
11504
Card Set
ACCT729 - Chap 4
Description
Chapter 4:
Updated
2010-03-22T00:41:14Z
Show Answers
Home
Flashcards
Preview