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Ortiz Manufacturing: Relevant Costs

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Ortiz manufacturing is considering developing and marketing one of two new products. Which items are relevant to Ortiz's decision about which of these productes it will launch?

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Solution Summary

Your tutorial is 192 words and explains the concept of relevant costs and gives 10 examples of relevant costs and two examples of costs that are NOT relevant.

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Ortiz Manufacturing
Ortiz manufacturing is considering developing and marketing one of two new products. Which items are relevant to Ortiz's decision about which of these products it will launch?

Relevant costs are those costs that will change with the decision. That is, what costs are DIFFERENT between the two choices. ...

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