Wednesday 16 May 2018

BUACC3714 - Relevant Information for Decision Making

Accept or Reject a Special Order. There are times when a customer places a special order for a large volume at lower prices than that usually charged by the business. In this event, the business should properly decide whether to accept or reject the special order.
www.accountingverse.com/managerial-accounting/relevant.../accept-or-reject.html


make-or-buy decision is the act of choosing between manufacturing a product in-house or purchasing it from an external supplier.
https://www.investopedia.com/terms/m/make-or-buy-decision.asp


Decision to Add or Drop Product Line. A decision whether or not to continue an old product line or department, or to start a new one is called an add-or-drop decision. ... Relevant information includes the revenues and costs which are directly related to a product line or department.
https://accountingexplained.com/managerial/relevant-costing/add-or-drop-product-line


Sell or further process. A decision whether to sell a joint product at split-off point or to process it furtherand sell it in a more refined form is called a sell-or-process-further decision. Joint products are two or more products which have been manufactured from the same inputs and in a same production process (i.e. a joint process).
https://accountingexplained.com/managerial/relevant-costing/sell-or-process-further


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