Cost Accounting

Cost Accounting: A Managerial Emphasis, Fourth Canadian Edition
Author: Horngren et al
This material is reproduced with the permission of Pearson Education Canada.

Chapter

Gildan Activewear is a multinational company that
produces casual wear offshore and distributes to
retailers such as GAP, Hudsons Bay Company,
and Old Navy. The companys managers require
excellent information to decide what quantities of

11

Decision Making
and Relevant
Information

material to purchase, where to correct the
products, and whether to expand or close manufacturing facilities.

Learning Objectives
After analyse this chapter, you should be able to
1. suck a five-step sequence in the decision
process
2. Distinguish relevant costs and revenues from irrelevant costs and revenues in any decision situation
3. Understand the difference between quantitative
factors and soft factors in decisions
4. Identify two potential problems in relevant-cost
analysis
5. Describe the opportunity cost concept; explain why
it is intentiond in decision making
6. Describe the key concept in choosing which among
binary products to produce when there are capacity
constraints
7. Discuss the key publishing managers must consider
when adding or dropping customers and segments
8.



Explain why the parole value of equipment is irrelevant in equipment replacement decisions
9. Explain how conflicts foot arise between the decision
model used by a manager and the performance model
used to evaluate the manager

orking with managers to make decisions is ane of the
main functions of the management accountant and an
important thrust of this book. The use of accounting information for decision making has been a self-consistent theme in earlier
chapters. In this chapter, we focus on particular proposition and common
decisions such as accepting or rejecting a one-time-only special
order, insourcing or outsourcing products or services, and
replacing or keeping equipment. We place special...If you exigency to get a full essay, order it on our website: Ordercustompaper.com



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