MBAA-102 Accounting for Managers – Unit 12

MBAA-102 Accounting for Managers – Unit 12

Objectives: distinguish between the different types of costs; distinguish between the nature of costs; present different alternatives before the decision making; and selection out of different alternatives.

Materials:
The relevant material is here.

Questions:

1. What do you understand about relevant cost and irrelevant costs ? Give one example.
2. Explain the concept of differential cost.
3. What is decision making process ?
4. List out four managerial applications of differential cost analysis .
5. Explain the practical applications of differential costing.