What are the relevant costs in a make or buy decision?
Examples of relevant costs in the context of a make or buy decision include direct labor, direct materials, variable overhead. Other costs that should be considered in this category are any incremental costs necessary for a part manufacturing.
What is the scope of qualitative research?
Qualitative research allows us to recognise, investigate and challenge how our positions as clinicians and researchers affect outcomes. Within clinical trials, it can impact upon the data collected, its subsequent analysis, the results gained and their interpretation, and their usefulness in clinical practice.
How is relevant costing used in decision making?
Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.
What are the kinds of qualitative research in real life?
Types of Qualitative Research methods:
- Ethnography. Ethnography, one of the most popular methods of qualitative research, involves the researcher embedding himself or herself into the daily life and routine of the subject or subjects.
- Grounded Theory.
- Case study.
How do we determine if a cost or revenue is relevant?
In cost accounting, relevant means that you consider future revenue and expenses. Also, relevant means that a cost or revenue will change, depending on a decision you make. Past costs are water under the bridge, and if the costs or revenue remain the same no matter what you decide, they aren’t relevant.
What are the two types of relevant costs?
The types of relevant costs are incremental costs, avoidable costs, opportunity costs, etc.; while the types of irrelevant costs are committed costs, sunk costs, non-cash expenses, overhead costs, etc.
When should a special order be accepted?
The rule is to accept the order if benefits exceed costs. When the company is operating at less than its maximum capacity and the company has enough capacity to produce and fill the special order, the order should be accepted if the additional sales exceed the additional variable costs.
What is the concept of relevant cost?
‘Relevant costs’ can be defined as any cost relevant to a decision. A matter is relevant if there is a change in cash flow that is caused by the decision. The change in cash flow can be: additional amounts that must be paid. a decrease in amounts that must be paid.
What is the most important characteristics of qualitative research?
Qualitative researchers typically gather multiple forms of data, such as interviews, observations, and documents, rather than rely on a single data source. Then they review all of the data and make sense of it, organizing it into categories or themes that cut across all of the data sources.
What qualitative considerations are relevant in a make or buy decision?
Choosing between these two methods is called the make-or-buy decision, or the outsourcing decision. Factors that influence the make-or-buy decision include both quantitative factors such as cost and time and qualitative factors such as the suppliers’ trustworthiness and the quality of their products.
What is a good qualitative research?
Good qualitative research should include sufficient detail about how the data were collected such as a description of the context and how and why there were changes in tech- niques or focus.
What are qualitative considerations?
Qualitative factors are decision outcomes that cannot be measured. Examples of qualitative factors are: Morale. The impact on employee morale of adding a break room to the production area.