Decision Making & Relevant Information: Make-or-Buy, Part 1 - Accounting video

This series of videos will discuss the the decision making process including relevance and relevant data; and creating relevant data analysis reports.
Accompanying lecture notes: tiny.cc/nw1enw
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[@magicsossy]

This simple example is just amazing. Thanks, Brian!

[@TheAccountingDr]

Hi Sosthene! I am glad that you found my managerial accounting video on make or buy decisions to be helpful... I hope to have many more managerial accounting videos out very soon. Please subscribe to my KZbin channel to receive notifications as new accounting videos are posted. In addition, visit my website at TheAccountingDr . com for additional accounting educational resources (i.e. eBooks, notes, games, discussion boards and more!). Happy Accounting!

[@kiyyahkabir]

I tried to go to the website but it will not come up. Great video by the way, very easy to understand when it is show in this way.

[@TheAccountingDr]

Karla Barnett, thank you for your comment. Unfortunately, that website no longer works. However, you can find me at www.TheAccountingDr.com

[@58059236]

why the fixed cost $30.00 is not differ by two alternatives? Why the fixed costs $50.00 and $30.00 are relevant cost for Make and Buy respectively？ Thank you so much!

[@TheAccountingDr]

58059236 ... as both alternatives include some fixed costs but not the exact same amount, we only are concerned with the amount that is different among the alternatives. So, if one alternative has fixed costs of $50 and the other will have $30, the only relevant amount is $20 for the alternative that would have $50 in fixed costs. Remember, this is not a financial statement. We are not trying to determine actual income or anything of that sort. We are simply creating an analysis for management to make the decision based on two alternatives.