ACC 410 Chapter 4: Chapter 4

• School: Ryerson University
• Department: Accounting
• Course: ACC 410
• Professor: Keith Whelan

Document Summary

Chapter 4 relevant costs for nonroutine operating decisions. Identify the type of decision to be made. 2: apply the relevant quantitative analysis technique(s) 4: consider the quantitative and qualitative information and make a decision. Quantitative information numerical information that is available for addressing a problem. To be relevant information, cash flows must (1) arise in the future (2) vary with the action taken. Sunk costs are always irrelevant to decision involving cash flow that arise in the future. Analysis techniques require input data: data for some input variables will be known and for other input variables estimates will be required. Qualitative information factors that are not valued in numerical terms is vital to good decision-making incorporated into our analysis using judgement. Consider quantitative and qualitative information to make a decision. After appropriate quantitative techniques have been applied, decision alternative with the highest dollar contribution to organization is identified.