Part 1 – 3 acct.

NO INTRODUCTION PAGE !! Just separate the parts.. 

PART 1 – 400 words.

Management decision making often involves first determining what information is relevant to the decision-making process. Understanding cost behavior and relevance allows managers to streamline the decision-making process. Profitability depends on the accurate interpretation of the revenues and costs associated with each decision. Determining the difference between relevant and irrelevant costs makes the decision process more efficient and accurate.

  • Evaluate relevant versus irrelevant information, and provide an example of each irrelevant cost discussed in your text.
  • Propose a scenario when differentiating between relevant and irrelevant costs is essential to the decision-making process.
  • Justify the reason that an opportunity cost would or would not be relevant to decision making. Use specific business examples.


PART 2 – 400 words

It is important for management to understand how different departments and customers contribute to the profitability of a company. Profitability is comprised of both price and costs. Costs can be allocated using a variety of methods. Understanding cost flows and the various methods of allocating costs is important in ensuring profitability.

  • Evaluate potential cost allocation methods that would impact an organization’s selling prices, and provide examples.
  • Communicate decisions faced when collecting and allocating indirect costs to customers, and provide examples.
  • Elaborate on why costs for one customer might be different from that for another customer being sold the same product or service.


Part 3 – 400 words

Review and reflect on the knowledge you have gained from this course. Based on your review and reflection, on the following:

  • What were the most compelling topics learned in this course?
  • How did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?
  • What approaches could have yielded additional valuable information?

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