Explain why depreciation on an existing asset
1.   What is the difference between tactical and strate- gic decisions?
2.   Explain why depreciation on an existing asset is always irrelevant.
3.   Give an example of a future cost that is not relevant.
4.   Explain why relevant costs need to be expressed on a periodically recurring basis.
5.   Relevant costs always determine which alternative should be chosen. Do you agree or disagree? Explain.
6.   Give an example of a fixed cost that is relevant.
7.   What is the difference, if any, between a relevant cost and a differential cost?
8.   When, if ever, is depreciation a relevant cost?
9.   What role do past costs play in relevant costing decisions?
10.    Can direct materials ever be irrelevant in a make- or-buy decision? Explain.
11.    Discuss the importance of complementary effects in a keep-or-drop decision.
12.    What are some ways a manager can expand his or her knowledge of the feasible set of alternatives?
13.    Should joint costs be considered in a sell-or-process-further decision? Explain.
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Posted 25 Apr 2017 07:04 PM
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