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tracy
Joined: 17 May 2008
Posts: 2
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| Posted: Sat May 17, 2008 7:34 am Post subject: Loans |
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I am currently working on relevant and irrelevant costs.
Why are loans or 'interest on loans' considered as irrelevent in cash flows? |
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stasia2003
Joined: 25 Feb 2008
Posts: 199
Location: FL
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| Posted: Sat May 17, 2008 9:35 am Post subject: Re: Loans |
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tracy wrote: I am currently working on relevant and irrelevant costs.
Why are loans or 'interest on loans' considered as irrelevent in cash flows?
I'm not sure if you're talking about cost accounting or not but...
Interest on a loan is not considered "operational" or a dollar amount that is generated in the "normal course of business". Therefore, it would be an irrelevant cost. |
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tracy
Joined: 17 May 2008
Posts: 2
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| Posted: Sat May 17, 2008 9:37 am Post subject: |
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yes its cost accounting...
thanks a lot for your help :) |
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