How do incremental, opportunity and sunk costs weigh into a make or buy decision? Apply these...

How do incremental, opportunity and sunk costs weigh into a make or buy decision? Apply these concepts to a decision that a company is trying to make.

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ekkarill92 answered 2 years ago

Why are relevant costs important in decision making? Explain sunk costs, incremental costs, opportunity costs, make...

Why are relevant costs important in decision making? Explain sunk costs, incremental costs, opportunity costs, make or buy decisions and strategic costing giving examples of each.

Why is it that sunk costs are never relevant to a decision whereas opportunity costs are...

Why is it that sunk costs are never relevant to a decision whereas opportunity costs are always relevant? Why do you think Goldratt’s Theory of Constraints received so much press by the business community?

Differentiate between opportunity costs and sunk costs. Are they used differently in decision-making? Explain.

Sunk or Opportunity costs. Explain the difference between a sunk cost and an opportunity cost and...

Sunk or Opportunity costs. Explain the difference between a sunk cost and an opportunity cost and give an example of each. please explain in depth.

Why don't we include sunk costs in decision making? Define relevant costs and opportunity costs and...

Why don't we include sunk costs in decision making? Define relevant costs and opportunity costs and explain how they're different from sunk costs.

describe differential cost, avoidable costs, sunk costs, and opportunity costs

1. What is a Sunk costs and how relevant is this cost in a decision-making.? 2....

1. What is a Sunk costs and how relevant is this cost in a decision-making.? 2. What is Opportunity costs and how relevant is this in making a decision.? 3. Excess or unused capacity are key element in a decision to accept or reject a special offer price on a product or activity what is your understanding of this concept.? 4. What is the different between avoidable and unavoidable cost? 5. Quantitative factors vs Qualitative factors, how useful are these...

WEEK 5: RELEVANT COSTS What is an example of an opportunity cost? How about a sunk...

WEEK 5: RELEVANT COSTS What is an example of an opportunity cost? How about a sunk cost? Are either of these relevant? Avoidable? Examples from work would be great!

Make or Buy (Outsourcing; diverting employee; relevant costs; sunk costs) Linkage makes 12,000 chains each month....

Make or Buy (Outsourcing; diverting employee; relevant costs; sunk costs) Linkage makes 12,000 chains each month. These chains are used to make other products they manufacture. For a 75-roll batch of chains, Linkage's costs are as follows: Direct materials: $145 Direct labor: $85 Manufacturing overhead: $335 Total: $565 Within manufacturing overhead, $150 per batch is for depreciation expenses. Don't consider any other costs or expenses. An outsourcer offers to sell you 12,000 chains for $46,000. Assume that using the outsourcer...

Explain sunk costs and opportunity costs. Provide a business example for each of these terms.

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