[SOLVED] Relevant Costs

I’m working on a Accounting question and need guidance to help me study.

Struggling to find relevant content or pressed for time? – Don’t worry, we have a team of professionals to help you on
[SOLVED] Relevant Costs
Get a 15% Discount on this Paper
Order Now

Discussion Topic 1: Relevant Costs

  • What is a relevant cost?
  • What is meant by “opportunity cost”?
  • Provide a scenario illustrating analysis of relevant cost and opportunity cost in a make or buy scenario.

Just do response each posted # 1 to 3 only

Posted 1

A relevant cost is refers to the incremental and avoidable cost of implementing a business decision. These cost are cost that are related to a change of cash flows. A opportunity cost is the potential loss when making a decision between alternatives when producing a product or performing a service. A make or buy scenario that would be for a company that produces piston rings were there is the option to buy them at one dollar a piece or produce them themselves that includes the relevant cost of labor and parts to produce the piston rings. The opportunity cost would be to make the piston rings them self or purchase from supplier.

Posted 2

  • When comparing costs to determine if we should accept a project or order, we must first analyze the cost comparison to see if we will benefit from taking the order. A cost that is different between the scenarios are considered a relevant cost because those costs are going to factor into the end decision (Weygandt, Kimmel, & Kieso, 2018). An example of a relevant cost is the difference in the amount of direct material costs between two products that you must decide which one to produce.
  • An opportunity cost is a cost that we lose to gain another cost. In the last unit, we talked about sales ratios, and which products we should choose to produce which will give us the most income when we have limited resources. If we had a company and had to choose to produce between item a and item b, and then choose item a, the revenue lost from item b is the opportunity cost.
  • A scenario that I can use is from a laser engraving business. If I wanted to make identification tags for emergency services, I can do one of two things. I can buy the sheet of plastic and have the laser cut out each tag and engrave them, or I can buy the tags pre-cut and then laser engrave the responder’s information on each tag. The difference in material costs is a relevant cost, as it will help determine my decision. For the opportunity cost, if by using a plain sheet and doing the cutting and engraving, my profit per tag is $2.00 dollars, and if I buy the tags and just engrave them for a profit per tag of $1.50, I am going to go with option a and buy the sheets to maximize my profit. The opportunity cost is the $1.50 I will lose with each tag by not going with option b, in order to make an extra $.50 cents per tag by using option a.

Posted 3

  • Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions.
  • Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another.
  • In regards to this week’s DB, I would say that a great example of an opportunity cost would be buy a computer versus build a computer. This one I use because I have personally been struggling with this the past couple of years. I could easily buy a pre-built computer but I lose on the opportunity of having current parts and/or having to upgrade. Another viewpoint on it is that if I were to buy a pre-built computer I could enjoy games now but the opportunity cost where I could save up to build a better PC has me not capable of playing some of the newer games when they come out for the new gen next year. I am aware it isn’t a management point of view but the same application is there. I could buy the parts and make a PC or i could just buy a PC. Granted I am not making any parts it seems like but I could indeed create a case or buy one. is it cheaper for me to use a 3d printer, buy materials, or buy the case. The relevant cost I believe I wrapped in with the opportunity. If i were supposed to give a number problem please respond and will adjust accordingly.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with MyCoursebay
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
IT, Web
A great job on my paper!! I really appreciate this!!
Customer 452885, January 30th, 2023
Criminal Justice
Looks good! Thank you Jason
Customer 452711, January 25th, 2022
Other
great
Customer 452813, July 9th, 2022
Mental Wellness
The skilled writer did a good job. I will add a few more details. Thank you, great job...
Customer 452547, June 17th, 2021
Social Work and Human Services
Excellent Work!
Customer 452587, July 28th, 2021
Social Work and Human Services
Thank you
Customer 452559, July 2nd, 2021
Human Resources Management (HRM)
Thanks for your assistance and promptness.
Customer 452701, November 1st, 2022
Other
AWESOME
Customer 452813, June 25th, 2022
Other
OK
Customer 452813, July 3rd, 2022
Other
GREAT
Customer 452813, June 25th, 2022
Philosophy
i got the paper a bit late but it is good quality will for sure come back and use this website.
Customer 452611, September 9th, 2021
Literature
Thank you , this is perfect !
Customer 452795, May 15th, 2022
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Get top-notch homework help now. 20% off first 10 orders!

NEW

Thank you for choosing MyCoursebay. Your presence is a motivation to us. All papers are written from scratch. Plagiarism is not tolerated. Order now for a 15% discount

Order Now