Relevant Costing: 

The Concept of Relevance, Relevant Cost and Sunk Cost; Identifying Relevant Costs and Benefits; Using Relevant Cost Information in Decision Making; Make, Lease or Buy Decisions; Limiting Factor Analysis; Addition or Deletion of Products, Departments or Segments; Special Sales Orders; Sell or Process Further Decision; Activity-Based Costing and Relevant Costs.

Learning objectives:

1. To Identify relevant and irrelevant costs and benefits in a decision.

 2. To Prepare an analysis showing whether a product line or other business segment should be dropped or retained.

3. To Prepare a make or buy analysis.

 4. To Prepare an analysis showing whether a special order should be accepted.

 5.To determine the most profitable use of a constrained resource and the value of obtaining more of the constrained resource.

After studying this chapter students will be able to:

1.Identify relevant and irrelevant costs and benefits in a decision.

 2.Prepare an analysis showing whether a product line or other business segment should be dropped or retained.

3. Prepare a make or buy analysis.

 4.Prepare an analysis showing whether a special order should be accepted.

 5.Determine the most profitable use of a constrained resource and the value of obtaining more of the constrained resource.