Cost accounting term paper topics

The common tendency is to include the $2,000,000 cost of the old system in the analysis. However, this cost is not differential between the decision alternatives . If Lie Dharma Technologies keeps the original system, that $2,000,000 will be deducted as depreciation expense over the system’s life. Alternatively, if the system is sold, the $2,000,000 will be charged against the revenue realized from the sale of the system. Thus, the $2,000,000 loss, or its equivalent in depreciation charges, is the same in magnitude whether the company retains the original or disposes of it and buys the new one. Since the amount is the same under both alternatives, it is not relevant to the decision process.

Cost accounting term paper topics

cost accounting term paper topics

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cost accounting term paper topicscost accounting term paper topicscost accounting term paper topicscost accounting term paper topics