ACC 406 Study Guide - Fixed Cost, Cost Accounting, Standard Cost Accounting
16 Apr 2011
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Document Summary
These notes are posted on blackboard to high light and complement certain aspects of the topic, facilitate those students who may have missed my lecture, balance traditional with internet based learning and overall enhance student"s learning. The notes are not meant to suggest what may be in the exams, replace textbook studying and/or problem solving. Relevant costs are defined as future costs and revenues that are. cash flows derived from disposing old equipment if a replacement decision is made. fixed costs (no matter what option is followed are the same) depreciation of old equipment (it is unavoidable costs) using total, not unit costs, for decision making may be advantageous. If the unit costs were developed at a different level of activity than the one relevant for the decision in hand. along run view of relative costing may be better than a short run view.
