Reference no: EM132473540
Question 1: Distinguish between the uses and users of cost accounting and financial accounting information.
Question 2: Explain how cost accounting information is used for decision making and performance evaluation in organizations
Using cost data for decision making:
Question 3: What is a cost driver?
Question 4: What are AM 's cost drivers and the related costs as shown in the example?
Question 5: What is a differential cost?
Question 6: What is a differential revenue?
Question 7: If AM expands, will the expansion result in differential revenue?
Question 8: Will the expansion result in differential costs? If so, which costs will change and what will cause this change in costs?
Question 9: After considering the differential revenues and costs associated with AM's possible expansion, is there a net cost or a net benefit to expanding?
Question 10: What is the amount of the net cost or the net benefit?