Cost Drivers Scenario [WLOs: 1, 2, 3, 4] [CLOs: 3, 6] Prior to beginning work on this discussion forum, read Chapters 10, 11, and 13 in your textbook. Differential and Variable Costs
Write: Make sure your response addressing the following question is more than 200 words and include an in-text citation from the reading material where appropriate. Differential and Variable Costs
A manager in your organization tells you over coffee one morning, “Differential costing is easy; variable costs are the only costs that are relevant.” As the organization’s accountant, how would you respond to this statement? Differential and Variable Costs
Later in your conversation this same manager opens a folder and produces a document he just received regarding a special order at a price that he believes is “below cost.” The manager is opposed to accepting orders of this nature because he feels every sale needs to carry a fair share of full costs in order to keep the company from failing. What would be your reply to this manager?
Cost Drivers Scenario [WLOs: 1, 2, 3, 4] [CLOs: 3, 6]
Prior to beginning work on this discussion forum, read Chapters 10, 11, and 13 in your textbook. Differential and Variable Costs
Write: Make sure your response addressing the following question is more than 200 words and include an in-text citation from the reading material where appropriate.
A manager in your organization tells you over coffee one morning, “Differential costing is easy; variable costs are the only costs that are relevant.” As the organization’s accountant, how would you respond to this statement? Differential and Variable Costs
Later in your conversation this same manager opens a folder and produces a document he just received regarding a special order at a price that he believes is “below cost.” The manager is opposed to accepting orders of this nature because he feels every sale needs to carry a fair share of full costs in order to keep the company from failing. What would be your reply to this manager?
A manager in your organization tells you over coffee one morning, “Differential costing is easy; variable costs are the only costs that are relevant.” As the organization’s accountant, how would you respond to this statement?