Problem on formal employment contracts with the bank


Question: Amir is a manager in a bank. He is using cost information to make a number of operational decisions. Some of these costs are salaries for other employees. Because employees have formal 1-year employment contracts with the bank, their salaries have to be paid regardless of the financial situation of the bank. Which of the following statements are true regarding these costs? (Check all that apply.) L Amir must consider contracted salary costs in most operational decisions. Amir can classify contracted salary costs as sunk costs. Amir can consider contracted salary costs as relevant for most decisions. Amir can consider contracted salary costs as irrelevant for most operational decisions.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Problem on formal employment contracts with the bank
Reference No:- TGS03417215

Expected delivery within 24 Hours