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decision making

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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October 13, 2017 at 6:41 am #410725
adarsh1997
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“Decisions should always be based on incremental accounting profit.”
-Could you explain how and why this statement is incorrect about relevant costing and decision making in general
October 13, 2017 at 8:27 am #410732
John Moffat
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Relevant costing doesn’t look at accounting profits.
Linear programming (for example) uses contributions rather than accounting profits.
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