Part 5 - Relevant Costs for Decision Making - Special Order
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- Опубліковано 22 сер 2024
- The links to the problems are no longer working.
If you want updated videos (with working links) try this playlist:
• MA Module 1, Video 1, ...
In this series of videos we look at relevant costs for short term decision making. There are 6 parts:
1.) Relevant Costs: Sunk and Differential costs discussed.
2.) Keep or Replace old equipment
3.) Drop or retain underperforming division
4.) Make or Buy
5.) Special order
6.) Constrained Resource
This video and the attached worksheet were prepared by Tony Bell of Thompson Rivers University (TRU) - I encourage educators to freely use, edit and modify these videos and the attached worksheet - they are available under Creative Commons Licenses.
Watching this video before my last accounting test. I've gotten help from you for two semesters now and I really appreciate it! You rock!
Best Management accounting lecture I ever had. 10 minutes answered all my confusions.
+Frank Li :) Thanks!
Yes, I agree I'm learning ,and encouraged to build
You’re the best! I understood it when my prof first taught it but I didn’t retain the info. The way you explain it is just too simple to remember. Thank you!
Thank you for the clear explanation in 12 minutes. Getting ready for my midterm.
Great videos. Our lecturer recommended us to watch this since he talks so fast in class and people complain. Thank you great videos. Watching all the way from New Zealand!
+Jamele Wickham Thanks so much! My #1 dream country to visit is New Zealand!
@@Tony-Bell HAHAH COME COME AND BE OUR TEACHER IN HERE
I learned more from you in these videos than I ever did in my Accounting class which was 3 hours per week.
Thanks!
Well, good luck on the final. Hope your hard work pays off!
Thank you very much for explaining things simply. You are so much more helpful than my university professors. This was great for confirming my own answers.
Thank you so much for these videos. Complex things explained in simple manner and with great clarity!!!
I really appreciate your great work ..... I understood from your videos better than my professor
really thanks to you because you made my life easer :)
majeed taher Thank you so much :)
You definitely saved my MA life and grades!!! From a Korean student studying in Singapore
Thanks! Happy to help.
save for speaking fast, i caught up on this real quick than listening to my Prof. on these concepts. Thanks a million.
Thank you! One of my students told me he plays back my videos at 0.5 speed (if you click the gear below the video, speed options appear). He said it helps for my fast talking, but I sound like I'm on drugs.
***** I'm actually doing a final case on outsourcing and special orders. Thank you for these videos because they have helped me understand.
this is such a helpful video, especially in the last bit where you taught us the break even point. My professor is a good teacher, but she had to rush this part to keep the schedule on track so this was very helpful
Eilrahc94 Thank you :)
Thank you so much for taking your time to help others with Accounting! You ARE AWESOME! THANK YOU!
Thanks Claudette!
it is really helping me a lot with my studies. thanks. you've been a great help.
Haha!
I'm currently watching all of your Managerial videos back to back as a semi-final revision for the Thursday final.
Thanks for all your efforts :D
It's a re-make...you have a good eye. A student pointed out a minor mistake in the other version, so I had to fix it!
I miss your tutorials, Tony! Looking forward to your new ones this semester.
Thanks! We'll see - I have been producing a bunch that I'm not able to post on youtube...hopefully I can put up some more!
Oh man, this makes sense now! Thank you for the video!
losersir Thanks!
You explained so well.. Better than my lecture.. Thank u sooo much
Tony, you came highly recommended from my Managerial Accouting tutor, and I must say, I'd rather attend your course. Thanks for the insight and clear and logical explanations. bravo..
Cary Paganoff Thank you very much!!
Sorry - I'm just an accounting guy - I wish I knew more about finance! (I think Khan Academy has good finance videos).
You are wonderful! Your videos have helped me out so much! Thanks :)
Eran Rendell Thanks Eran!
Thank you very much Tony your videos helped a lot I passed with good marks.
thanks again
Congrats - good job on getting through accounting! It's not easy :)
Thanks video was of great help
These videos are amazing, I might now have a chance not to fail.. Do you think you could provide us an explanation of an NPV method calculation steps. Thank you so much , have a good day!!
Eugenia Savini Thanks - I plan to add to my videos later this summer...sorry nothing new for a couple months.
Great material, it was so helpful
Thank you so much for posting these videos. You have helped me a great deal. Much appreciated :)
Thanks! Happy to help!!
Awesome videos everything jst makes sense (im in my final year electrical engineering and doing a business course)...i have a question however, shouldn't we also consider whether our fixed costs have already been covered before taking the special order?
Thanks! I'm taking Accounting online and I can't learn from just reading a textbook.
Amazing 🤩 you are so much better than my professor 🤩👍🏻👍🏻👍🏻👍🏻
Hi sir. What if the problem has plant capacity? How do we solve it? I hope u make a video of it. You are so good in ecolaining sir. Thank you so much!
your video is better than my accounting course. my teacher talks too much shit on his personal ideas.
张二货 Thanks :)
After watching this video, i'm totaly understanding this chapter... unfortunately my teacher not good as you...how i wish my accounting teacher is as good as you...
i think the direct Labor is irrelevant, because the capacity is 45000, that means the special orders are in the labor capacity and that means no matter accept or not, you have to pay the same labor hours
God bless you tony
Good video......but I think you're missing the idea that the comparison need to be made by including the 35000 unit remaining if the contract for 5000 unit with discount to be accepted. So the right comparison would be 4000 unit with normal price OR with 3500 unit normal price plus 5000 unit discount price..............just my observation, may be I'm wrong....
Jeeze thats bare tings fam!
Dear Tony,
Your Video are so helpful, I wish you could do standard costing.
Thanks - and I do have a series - I think if you google my name and "variance analysis" you will find what you are looking for.
I sincerely hope you can make it happen. cheers!
You are awesome. You helped me so much! Thanks alot! :D
Thanks :)
I love your videos! So informational and so very easy to follow. You have greatly helped me prepare for my Accounting exams (Both Financial and Managerial). Final coming up this Thursday!
Is this a 'remake' of a previous video? I feel I have seen this one before... but a little different than this.
They said the variable selling expenses will be slashed by 75% not the variable selling price. Isn't 360000*25% then we get 90000?
what happens to the amount we lose due to the discount. before making your decision, wouldn't the fact that you losing 20% be relevant. so won't that lost $75000 be relevant. If it is relevant it changes this whole question because suddenly you answer is a negative $5000 prompting us to not take the special order.
Even If we did not make anything the offer should be accepted because we have the special machine machine as an assets
Abdulla alketbi We don't already own the machine in this scenario....
hey tony bell, i really love your work. your way better than the profs i have at my university. Through your videos i did very well in my managerial course last term. now i was wondering lol are you good with finance. Do you think you can help me and maybe your followers with this course :P please let me know.
man you are good.
hi! where do we get the Worksheet? I don't see the link :/ thx for your help
Hi, thank you for the video, it helped me a lot. Quick question, right before the final part where you add the special machine which costs 40 000$, where did you get the 8$/unit from?
Raf
$40000/5000 units = $8
you're awesome, thanks
Ganja all Day Thanks!
I have a question. We do not consider fixed costs for decision making as they are irrelevant. But why do we consider them in our regular business operations in case of a buy or make or special order? We should not consider them in the original income statement as well. Please answer to this query at your convenience.
+Daniyal Raza There are multiple ways to solve these questions. I find the more intuitive way is to actually look at the overall costs for all options, but if we only look at differential costs (relevant costs) we will find our way to the same answer in a different way.
how can i down load the lecturer notes@@Tony-Bell
Hi, I would like to learn the special order for the decision making. I also had tried some of the exercises on it. Unfortunately, I have face difficulties when it comes to the case study because I need to analyse everything carefully. If you do have any ideas on how to solve this problem feel free to suggest it :)
Do you solve questions for students?
Thank you! :)
Very helpful have exam tomorrow
how to download the hard copy of this ?
Supervision (irrelevant cost or relevant cost)?
Iam Syafi Usually it will be fixed in relation to production, so most likely IRRELEVANT. But honestly depends on the situation. Is it different between the alternatives?
Where's the worksheet link?
awesome :)
Thank you!
And travel
Tonnnnnnnyyyy help looking for the video that can help me with weighted avarage method,assigning costs pleaseeeee
Hi Umar, I'm thinking you are looking for weighted average process costing. If you google my name, and process costing - you'll find the videos.
thanks great man you are champion
Tony I live in Australia but i have a dream to come and meet you, i will probably in the future.
sorry i got it :) thanks hey
No worries - glad you got it!
bare tings out here ah ah
thanks tony..ur video helped me a lot..wanted to email u though but i dnt see ur email address
Ryan M Thanks Ryan, no need for an email you can message me through UA-cam if you'd like.
Labour is such an annoying way to spell labor
Haha - we Canadians owe our whacky spelling to the British! (At least we got metric...)
Thanks a lot Tony :) It's very informative and useful for my studies :D