Students dealing with financial accounting need to be well-versed with an important segment of their syllabus- Relevant Cost for Decision Making. This will help them in performing well in their times of assessment. It is only when you practice various test questions can you have a better understanding of the topic.
Some test questions you need to have utmost command are given as follows for your better understanding.
- What do you mean by the concept of Decision making?
- Why is the Decision Making Process important for any business organization?
- What are the steps involved in the process of decision making?
- What are the various cost concepts in Decision Making?
- What is the meant by the concept of Relevant Costs for Decision Making?
- What are Relevant Costs?
- Elucidate the various types of relevant costs.
- What makes the role of the Management Accountant in planning about the alternative counsel action crucial? Justify your answer with a reference.
- What do you mean by Differential Costs?
- How does this differential cost affect various areas of decision making process of a company?
- What are the various applications of differential costs?
- What are the differences between the marginal costs and differential costs of a company?
- State the factors to be considered while closing down the operations of a business organization.