Relevant Costs - Managerial Accounting Decisions & Scenarios
4.4 (85 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
20,176 students enrolled

Relevant Costs - Managerial Accounting Decisions & Scenarios

Common managerial accounting decisions analyzed using relevant cost methods that can apply to all large decisions
4.4 (85 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
20,176 students enrolled
Last updated 5/2019
English
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Current price: $129.99 Original price: $199.99 Discount: 35% off
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This course includes
  • 6.5 hours on-demand video
  • 32 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Managerial accounting concepts
  • How to use relevant costs to make decisions
  • How to apply relevant costs to make a "make or buy" decision
  • How to apply relevant costs to make a "sales mix" decision
  • How to apply relevant costs to make a decision to eliminate a division or not
  • How to apply relevant costs to make a to purchase new equipment or not
  • How to apply relevant costs to make a to accept a special offer or not
  • How to set a unit sales price using cost data
Requirements
  • Understanding of basic accounting terms
Description

Apply relevant cost methods to common managerial decisions.

Managers often need to make decisions that are not routine, not part of the normal day to day process, and that can have a long-term effect on the organization. Individuals often need to make similar decisions and can apply similar tools when making decisions of a large dollar amount that can affect multiple years.

Although the specifics of each decision differ, the concept of relevant costs helps us put together a process for gathering and analyzing data, picking up the information that matters, and removing all the excess data that does not matter to our decision. Understanding relevant costs will reduce the likelihood of making incorrect decisions based on a sunk cost effect or not taking into account opportunity costs.

We will analyze the decision-making process of buying a new piece of equipment or keeping an older piece of equipment, a question often relevant to individuals as well as businesses. The decision of whether to buy new equipment is subject to the sunk fallacy effect, and we will discuss why this is.

This course will investigate the managerial accounting question of a “special offer.” The “special offer” question often takes the form of a one time offer to purchase from us at a reduced price. It is often the case that a business will benefit from accepting a special offer and the concept of relevant costs will help us to see why. For example, a hotel may have an incentive to take a “special offer” to sleep in a room for a night at a price far below the standard rate and even below cost as it is generally calculated. We will discuss why, and how this concept applies to business in general.

We will apply the concepts of relevant costs to a “make or buy” type decision. Should we make a component internally or purchases it from an outside vendor?

The course will discuss the managerial accounting question of whether we should process a product further. In other words, should we sell a product at one point of production or should we process the product further and sell it for a higher price? We will also discuss a similar question related to defective inventory and whether we should scrap the inventory now or rework it.

We will discuss the question of what sales mix to use. In other words, if we have multiple products which ones should we produce and how much should we produce?

The course will discuss the question of eliminating a segment or department of a company. For example, if a departmental income statement shows a loss, should the department be eliminated and how can we apply relevant costs to make the best decision?

We will discuss how to use cost data to set a sales price using a cost method and variable cost method.

Who this course is for:
  • Accounting students
  • Business owners & professionals
  • Anyone who whats to learn accounting
Course content
Expand all 92 lectures 06:28:52
+ Managerial Accounting Overview
17 lectures 01:08:54
2 Managerial Accounting Overview
00:23
PDF - 10 Managerial Accounting Introduction
00:08
10 Managerial Accounting Introduction
13:03
PDF - 20 Cost Classifications
00:08
20 Cost Classifications
09:31
PDF - 30 Product Costs & Period Costs
00:08
30 Product Costs & Period Costs
16:25
PDF - 40 Prime Costs & Conversion Costs
00:08
40 Prime Costs & Conversion Costs
05:35
PDF - 50 Manufacturer's Balance Sheet
00:08
50 Manufacturer's Balance Sheet
03:15
PDF - 60 Manufacturer's Income Statement
00:08
60 Manufacturer's Income Statement
08:49
PDF - 70 Manufacturing Activities Flow
00:08
70 Manufacturing Activities Flow
07:51
PDF - 80 Just In Time (JIT) Manufacturing
00:08
80 Just In Time (JIT) Manufacturing
02:58
+ Make or Buy Decision
7 lectures 20:11
3 Make or Buy Decision
01:06
PDF - 252 Make or Buy Decision
00:08
252 Make or Buy Decision
05:12
Excel Worksheet Download
00:05
Worksheet - 252 Make or Buy
07:36
Multiple Choice Question 2
05:45
Accounting Comic Break
00:19
+ Scrap or Rework & Sell or Process Further Decisions
13 lectures 30:32
4 Scrap or Rework & Sell or Process Further Decisions
01:39
PDF - 262 Scrap or Rework
00:08
262 Scrap or Rework
05:15
Excel Worksheet Download
00:05
Worksheet - 262 Scrap or Rework
05:07
Excel Worksheet Download
00:05
Worksheet - 264 Scrap or Rework
03:10
PDF - 272 Sell or Process Further
00:08
272 Sell or Process Further
04:08
Excel Worksheet Download
00:05
Worksheet - 272 Sell or Process Further
04:24
Multiple Choice Question 3
05:57
Accounting Comic Break
00:21
+ Sales Mix Decision
10 lectures 49:13
5 Sales Mix Decision
01:13
PDF - 280 Product Mix Decision
00:08
280 Product Mix Decision
14:44
Excel Worksheet Download
00:05
Worksheet - 282 Sales Mix
17:37
Excel Worksheet Download
00:05
Worksheet - 284 Sales Mix
07:33
Multiple Choice Question 4
07:07
Accounting Comic Break
00:20
Accounting Comic Break
00:21
+ Segment Elimination or Not Decision
7 lectures 39:29
6 Segment Elimination or Not Decision
01:10
PDF - 300 Department Operating at a loss Close or Not
00:08
300 Department Operating at a loss Close or Not
06:32
Excel Worksheet Download
00:05
Worksheet - 302 Segment Elimination
22:56
Multiple Choice Question 5
08:18
Accounting Comic Break
00:20
+ Equipment – Keep Old or Buy New Decision
7 lectures 27:08
7 Equipment Keep Old or Buy New Decision
01:23
PDF - 410 Equipment Keep Old or Purchase New
00:08
410 Equipment Keep Old or Purchase New
07:38
Excel Worksheet Download
00:05
Worksheet - 410 Keep Old Equipment or Purchase New
06:31
Multiple Choice Question 6
11:10
Accounting Comic Break
00:13
+ Special Offer – Accept or Deny Decision
14 lectures 01:17:31
8 Special Offer – Accept or Deny Decision
01:50
PDF - 450 Special Project or Offer - Accept or Reject Decision
00:08
450 Special Project or Offer - Accept or Reject Decision
13:30
Excel Worksheet Download
00:05
Worksheet - 452 Special Offer
19:48
Excel Worksheet Download
00:05
Worksheet - 454 Special Offer
15:37
Excel Worksheet Download
00:05
Worksheet - 455 Special Offer
07:27
Excel Worksheet Download
00:05
Worksheet - 472 Service Selling Price
02:30
Multiple Choice Question 7
11:20
Multiple Choice Question 8
04:48
Accounting Comic Break
00:13
+ Set Sales Price Using Cost Data
12 lectures 49:23
9 Set Sales Price Using Cost Data
00:33
PDF - 432 Set Sales Price
00:08
432 Set Sales Price
08:34
Excel Worksheet Download
00:05
Worksheet - 432 Sales Price Total Cost Method
07:17
Excel Worksheet Download
00:05
Worksheet - 433 Sales Price Variable Cost Method
11:33
Excel Worksheet Download
00:05
Worksheet - 436 Target Costing Using Excel Feature Goal Seek
04:37
Multiple Choice Question 9
10:54
Multiple Choice Question 10
05:19
Accounting Comic Break
00:13