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In this course, we are learning about managerial accounting, which focuses on how to use accounting information to manage a company. However, it is important to also remember the other areas of a business that provide crucial information that should be used in decisionmaking. In chapter 12, we discuss relevant costs being the most important items to consider when making a decision, such as make or buy or whether to accept a special order. In reality (and not the world of textbook answers), there are many other things we must consider.

Explain the concept of relevant costs in your own words and why this is considered to be important in managerial accounting decisions. Identify and describe other considerations that should be made when looking at these different decisions as an ethical business person. Why is it important that all of these be considered and not just relevant dollar costs?

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