Relevant Costs - Managerial Accounting Decisions & Scenarios

Common managerial accounting decisions analyzed using relevant cost methods that can apply to all large decisions

4.45 (164 reviews)
Udemy
platform
English
language
Accounting & Bookkeeping
category
46,343
students
6.5 hours
content
May 2019
last update
$84.99
regular price

What you will 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

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.

Screenshots

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Content

Introduction

Introduction
PDF 110 Decision Making Process
110 Decision Making Process
Multiple Choice Question 1
Accounting Comic Break

Managerial Accounting Overview

2 Managerial Accounting Overview
PDF - 10 Managerial Accounting Introduction
10 Managerial Accounting Introduction
PDF - 20 Cost Classifications
20 Cost Classifications
PDF - 30 Product Costs & Period Costs
30 Product Costs & Period Costs
PDF - 40 Prime Costs & Conversion Costs
40 Prime Costs & Conversion Costs
PDF - 50 Manufacturer's Balance Sheet
50 Manufacturer's Balance Sheet
PDF - 60 Manufacturer's Income Statement
60 Manufacturer's Income Statement
PDF - 70 Manufacturing Activities Flow
70 Manufacturing Activities Flow
PDF - 80 Just In Time (JIT) Manufacturing
80 Just In Time (JIT) Manufacturing

Make or Buy Decision

3 Make or Buy Decision
PDF - 252 Make or Buy Decision
252 Make or Buy Decision
Excel Worksheet Download
Worksheet - 252 Make or Buy
Multiple Choice Question 2
Accounting Comic Break

Scrap or Rework & Sell or Process Further Decisions

4 Scrap or Rework & Sell or Process Further Decisions
PDF - 262 Scrap or Rework
262 Scrap or Rework
Excel Worksheet Download
Worksheet - 262 Scrap or Rework
Excel Worksheet Download
Worksheet - 264 Scrap or Rework
PDF - 272 Sell or Process Further
272 Sell or Process Further
Excel Worksheet Download
Worksheet - 272 Sell or Process Further
Multiple Choice Question 3
Accounting Comic Break

Sales Mix Decision

5 Sales Mix Decision
PDF - 280 Product Mix Decision
280 Product Mix Decision
Excel Worksheet Download
Worksheet - 282 Sales Mix
Excel Worksheet Download
Worksheet - 284 Sales Mix
Multiple Choice Question 4
Accounting Comic Break
Accounting Comic Break

Segment Elimination or Not Decision

6 Segment Elimination or Not Decision
PDF - 300 Department Operating at a loss Close or Not
300 Department Operating at a loss Close or Not
Excel Worksheet Download
Worksheet - 302 Segment Elimination
Multiple Choice Question 5
Accounting Comic Break

Equipment – Keep Old or Buy New Decision

7 Equipment Keep Old or Buy New Decision
PDF - 410 Equipment Keep Old or Purchase New
410 Equipment Keep Old or Purchase New
Excel Worksheet Download
Worksheet - 410 Keep Old Equipment or Purchase New
Multiple Choice Question 6
Accounting Comic Break

Special Offer – Accept or Deny Decision

8 Special Offer – Accept or Deny Decision
PDF - 450 Special Project or Offer - Accept or Reject Decision
450 Special Project or Offer - Accept or Reject Decision
Excel Worksheet Download
Worksheet - 452 Special Offer
Excel Worksheet Download
Worksheet - 454 Special Offer
Excel Worksheet Download
Worksheet - 455 Special Offer
Excel Worksheet Download
Worksheet - 472 Service Selling Price
Multiple Choice Question 7
Multiple Choice Question 8
Accounting Comic Break

Set Sales Price Using Cost Data

9 Set Sales Price Using Cost Data
PDF - 432 Set Sales Price
432 Set Sales Price
Excel Worksheet Download
Worksheet - 432 Sales Price Total Cost Method
Excel Worksheet Download
Worksheet - 433 Sales Price Variable Cost Method
Excel Worksheet Download
Worksheet - 436 Target Costing Using Excel Feature Goal Seek
Multiple Choice Question 9
Multiple Choice Question 10
Accounting Comic Break

Reviews

Omotoke
June 3, 2022
Yes it was good match, i have a better understanding of the necessary process in to follow in making a decision, especially managerial accounting
Deepanshu
July 26, 2021
Amazing course on Managerial accounting along with useful resources such as PPT and excel files for practical application of the learning.
Lleana
February 14, 2021
The speaker is very knowleadgeable of the topic and has presented the discussions were easy to understand and follow ?
JULIUS
February 13, 2021
this is the very important tools on how to analyze the data of the big corporations in terms of decisions
Cherry
February 10, 2021
It’s grate and it is add to my knowledge of course it is related to my course. Thank you for this course.
Saiesh
November 10, 2020
The managerial decision making is an important aspect of an organisation and it also useful in daily life. It's good to get more knowledge from an experienced professionals.
Bertrand
February 4, 2020
until now the best cours i attended about cost accounting. with many prctical examples and business scenario to better understand and excel worksheet to lern by practice. i learn a lot about how to be more efficient in my work as controller and how to help the Management Board to take better decision in cost management

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Related Topics

2362220
udemy ID
5/11/2019
course created date
10/7/2019
course indexed date
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