These costs relate to the benefit lost or foregone when a chosen option( course of action) precludes the benefits from an alternative option. These costs are generally deductible for federal income tax purposes. In terms of most short-run decisions, they are irrelevant.
Question 5. Question: A useful device for solving production problems involving
multiple products and limited resources is: Student Answer: Gross profit per unit of product. Contribution per unit of scarce resource. Value-stream costing. Relevant cost pricing. The contribution income statement.
Question 6. Question: Relevant costs for a make-or-buy decision for a component part
include all of the following EXCEPT:
These costs relate to the benefit lost or foregone when a chosen option( course of action) precludes the benefits from an alternative option. These costs are generally deductible for federal income tax purposes. In terms of most short-run decisions, they are irrelevant.
Question 5. Question: A useful device for solving production problems involving
multiple products and limited resources is: Student Answer: Gross profit per unit of product. Contribution per unit of scarce resource. Value-stream costing. Relevant cost pricing. The contribution income statement.
Question 6. Question: Relevant costs for a make-or-buy decision for a component part