management accounting-relevent cost and relevant issues Free Essay, Term Paper and Book Report
Dear Management director :
Thank you for your letter dated on 20 July, 2006. I am dealing with your request into four parts with the headings below Details underlined.
Introduction
Management accounting is worried by means of occupied costs planned for external reporting; relevant costs predestined for decision support, in addition to controllable costs intended for planning to control purposes. Full costs in a manufacturing environment are characteristically defined as the sum of direct material, direct labor, and manufacturing overhead. Full costs are the basis for measuring the cost of a product. We quickly find, though, as we turn to making cost-based decisions that full product costs are not necessarily relevant costs.
In this report, I will explain the relevant issues on relevant costing as your request and give one particular examples to understand how it can be used in the business and give some recommendations at the end.
Relevant costing and relevant issues
Definition
Relevant cost is the only cost to be taken into consideration in the financial evalua......
Word Count: 3085
Page Count: 12.3 (250 words a page / double spaced)
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