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  3. a relevant cost 1) occurs in the future 2) differs

A relevant cost 1) Occurs in the future 2) Differs between the alternatives in a...

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Accounting

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A relevant cost 1) Occurs in the future 2) Differs between the alternatives in a decision For each of the following costs and decisions decide whether the cost is relevant or not relevant. Cost Unavoidable fixed overhead Decision Eliminate an unprofitable segment Direct labour Make or buy Replace equipment Sell or process further Original cost of old equipment Joint production costs Opportunity cost Segment manager's salary Cost of new equipment Incremental production costs Accept a special order Eliminate an unprofitable segment (The manager will be terminated) Replace equipment Sell or process further Replace equipment The amount of materials required does not change) Purchase or lease a building Direct materials Rent expense

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