[Verse 1] Sarah's got a choice to make, expand or stay the same New equipment costs a hundred grand, but will it boost her gain The old machine she bought last year for fifty thousand down That money's gone, it's in the past, don't let it turn you around [Chorus] Relevant costs will change your mind Future focused, leave the past behind If it differs between choices A and B That's the cost that matters, can't you see Sunk costs sink, don't let them drag you down Future cash flows wear the decision crown [Verse 2] Two suppliers bid for parts, one's cheap but shipping's high The other costs more up front but delivery's nearby Compare the total cash you'll pay, not just the sticker price Incremental thinking here will give you sound advice [Chorus] Relevant costs will change your mind Future focused, leave the past behind If it differs between choices A and B That's the cost that matters, can't you see Sunk costs sink, don't let them drag you down Future cash flows wear the decision crown [Bridge] Differential analysis shows the way Opportunity costs make you stop and weigh Avoidable expenses get the nod Fixed costs shared by all? Against the odds [Verse 3] Make or buy, accept or not, close down or keep it going Relevant costs light the path when business winds are blowing Ignore what's spent, focus ahead on cash that's yet to flow That's how smart accountants help the business profits grow [Chorus] Relevant costs will change your mind Future focused, leave the past behind If it differs between choices A and B That's the cost that matters, can't you see Sunk costs sink, don't let them drag you down Future cash flows wear the decision crown [Outro] When decisions call your name Play the relevant cost game Future different, that's the key CPA decision strategy
← Internal and External Benchmarking Strategies | Break-Even Analysis and CVP →