管理会计(双语)-5

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1、Chapter5Short-termDecisionsChaptercontents:I.ClassificationofdecisionsII.RelevantandirrelevantcostsIII.MakingdecisionsI.ClassificationofdecisionsShort-termdecisionsLong-termdecisionsStructureofadecisionSetobjectivesBecomeawareoftheneedforadecisionDecidewhatalternativesareavailableEvaluatealternat

2、ivesDecideonacourseofactionAlternative(1)Alternative(2)Factorsusedtoevaluatethealternatives:Quantitativefactors:1.relevantcostsandrevenues2.acommontheme-thecomparisonofrelevant(incremental)revenueswithrelevant(incremental)costsQualitativefactors:II.RelevantandirrelevantcostsRelevantcosts:costswhi

3、charerelevanttoadecision.(Futurecashflowsarisingorstoppedasadirectresultofthedecisionunderreview)Irrelevantcosts:costswhicharenotrelevantfordecision-making.Relevantcosts:OpportunitycostCashflowcostControllablecostsReplacementcostVariablecostIncrementalfixedcostsspecificcostsAvoidablecostsDeferrab

4、lecostCharacteristicsofrelevantcosts:FuturecostsChangeaccordingtothedecisionmadeNotthecommoncostsofthealternativesOpportunitycostsDefinitionofopportunitycostsIdentifyingtherelevantopportunitycostofeachresourceIrrelevantcosts:SunkcostsUnavoidablecostHistoricalcost(bookvalueandaccountingdepreciatio

5、n)FixedcostintherelevantrangeofactivityUncontrollablecostCommoncostCharacteristicsofirrelevantcosts:IncurredinthepastHavealreadybeenspentNoncashflowcostsassociatedwiththedecisionThecommoncostsofthealternativesNotaffectedbythedecision-makingExample:Relevantcost–materialsStuartLtdhastoincorporate10

6、0kgsofmaterialXintoaspecialorderforacustomer.DataformaterialXisasfollows:Quantityinstock75kgsOriginalpurchaseprice£2/kgCurrentreplacementprice£3/kgIfnotusedonthespecialorderallexistingstocksofXmustbedisposedofatacosttoFLtdof£0.50/kg.WhatistherelevantcosttomaterialXforthespecialorder?A£37.50costB£

7、37.50savingC£75.00costD£187.50costIII.MakingdecisionsEOQEBQMake-or-buydecisionAcceptorrejectacontractShutdown(ornot)ordiscontinuingaproductLimitingfactorReasonsforholdingstocksandtheassociatedcostsToincreasesalesandpro