Accounting data is very helpful in the decision-making process. For example, if you were to buy a car you would need to know all the costs associated which includes the costs of your current car, the costs of the new car, and the funds available to cover those costs. The same is true in accounting. All sorts of data is available to help managers make decisions. They can also break that data down into various categories to make it even more useful.
To help you begin to understand the kinds of data that accountants can provide, answer these questions:
1 – What is the difference between an opportunity cost and a sunk cost? Share an example of each with the group.
2 – Define variable, fixed, and mixed costs. Share an example of each with the group.
3 – What is the formula for the contribution margin ratio? How is it useful in the decision-making process?
Discussion #2 250 words
This week, you were asked to access a number of videos and websites. These are great resources to help you learn the materials this week. Consider what type of resource you find most helpful in learning new materials (videos, examples, text, etc). Then consider which topic you struggled with the most this week. Complete an online search for a new resource that will help you with that topic. For example, if you learn best from videos and you struggled with the topic double entry accounting, then complete an online search for “double entry accounting videos”. If you learn best by examples, search for “double entry accounting examples”. Select one of the items you find in your search that you found particularly helpful in learning the topic you struggled with the most and post a summary of the resource and a link to the resource.
Cite and summarize the resource.
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