Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

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solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

Solutions to review questions
10.1
The five steps in the decision process outlined in Exhibit 10.1 of the text are
1
Gathering information
2
Making predictions
3
Choosing an alternative
4
Implementing the decision
5
Evaluating performance.
10.2
Relevant costs are those expected future costs that differ among alternative courses of action. Historical costs are irrelevant because they are past costs and therefore cannot differ among alternative future courses of action.

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
10.3
No. Relevant costs are defined as those expected future costs that differ among alternative courses of action. Thus, future costs that do not differ among the alternatives are irrelevant for deciding which alternative to choose.

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