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郑州航空工业管理学院-管理会计学
Theprofit maximizing volume is the quantities at which marginal cost equals price.
Variableexpenses are divided into avoidable and unavoidable costs.
Unavoidable costs are neverrelevant in deciding whether to eliminate a product or department.
Unavoidable costs do not include commoncosts.
Relevant costs are only variable.
Relevantcosts may include fixed avoidable costs.
Nonfinancialinformation can influence decisions to add or delete products.
Operating at capacity indicates that thecompany does not want to produce more products.
A scarceresource limits the production or sale of a product or service.
Scarce resources include labor hours.
In deciding whether to add or drop newproducts, services, or departments, managers should emphasize the option that makes the greatest contributionpossible to pay unavoidable costs.
Unavoidablecosts are never relevant in deciding whether to eliminate a product or department.
Unavoidablecosts do not include common costs.
Ascarce resource limits the production or sale of a product or service.
Scarceresources include labor hours.
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