ACC 310F Chapter Notes - Chapter 1: Sunk Costs, Management Accounting, Fallacy

78 views3 pages
9 Feb 2017
School
Department
Course
Professor

Document Summary

The principle of relevance helps us focus only on those costs and benefits that matter for the decision at hand to identify the best option. Role of managerial accounting is to measure costs and benefits of decision options by Then estimating the amounts of each identified cost and benefit. Principle of relevance determines which costs and benefits to consider when evaluating the various options a decision maker faces. Principle of controllability measures how long it takes to reap the net benefits from decisions. Focusing on costs and benefits that differ between two options rather than ones that they share. This principle narrows your attention to relevant costs and relevant benefits, which are costs and benefits that differ across decision options. This principle helps decision makers compare options by focusing on those costs and benefits that matter, and ignoring items that are common and irrelevent.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents