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Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process?

Human Resource Management

Human Resource Management

Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process?

Primary Task Response: Within the Discussion Board area, write 350–450 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

Additional Information: Eddison Electric Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. The President of EEC recently called a meeting to announce that a firm has approached EEC about a possible acquisition. The President wants to consider this purchase and has requested that you and your staff analyze the feasibility of acquiring this supplier. Discuss the following:

  • Which costs would be utilized in making the decision to purchase the asset? Are future costs relevant in the decision-making process? Please justify and support your position.
  • List and discuss the pros and/or cons associated with this potential acquisition.

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NB

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