Sort costs by whether they matter
Exercise and reference answers
- Left
- Include
- Items
- Item
- Bought-in price
- Answer
- Include
- Item
- Inbound shipping
- Answer
- Include
- Item
- Sales commission
- Answer
- Include
- Item
- Scrap proceeds
- Answer
- Include
- Item
- New machine price
- Answer
- Include
- Item
- Fixed overhead
- Answer
- Ignore
- Item
- Old machine cost
- Answer
- Ignore
- Item
- Site restoration
- Answer
- Ignore
- Right
- Ignore
- Instructions
- Swipe left to include the cost in the comparison, right to leave it out.
Explanation
_Source: Jonick, Principles of Managerial Accounting, section 9.1 Introduction_