Homework answers / question archive / The class is called Managerial Accounting This week's topic of discussion is: Managerial Accounting and Job-Order Costing Let's look "beyond accounting" for a moment

The class is called Managerial Accounting This week's topic of discussion is: Managerial Accounting and Job-Order Costing Let's look "beyond accounting" for a moment

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The class is called Managerial Accounting

This week's topic of discussion is: Managerial Accounting and Job-Order Costing

Let's look "beyond accounting" for a moment. From a business perspective, why should there be "high scrutiny" before the decision is made to dispose of an asset - even if it is old and not "state of the art?" As a hint, think about using an old car vs. buying a new one that might be a bit more fuel efficient. Is the extra monthly payments really going to offset the gas guzzling old vehicle? Why do managers need to look at the decision from a higher level?