devry acct244 week 3 and week 4 discussions latest 2015

| June 7, 2016

Question
week 3

Cost Analysis for Decision Making (graded)
One of your coworkers notes, “This whole subject of differential costing is easy; variable costs are the only costs that are relevant.” How would you respond?

Cost Estimation Methods (graded)
Is there one cost estimation method that is the best to use? What problems can occur with cost estimations?

diss 4

Product Costs (graded)
Refer to the data in Exercise 6-34 on page 227. The president of Tiger Furnishing is confused about the differences in costs that result from using direct labor costs and machine hours. Why are the two product costs different? Which method would you recommend to the president, and why?

Cost Allocation (graded)
Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct.

Do you agree with the previous statement? Support your answer.

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