Incremental costs as relevant costs, Cost Accounting

Incremental Costs as Relevant Costs

An incremental cost is specifically incurred with the following a course of action and ignorable if such action is not implemented. It contrasts along with sunk costs that have already been incurred and cannot be ignored whether the future course of action is taken. Incremental costs are relevant in decision-making situations as like

a) Whether to buy in a component or service or manufacture it utilize the company's own resources.

b) Whether to further process one of the joint products that emerge from a process before it is sell or sold it in its existing form with no further processing.

Posted Date: 2/7/2013 1:44:25 AM | Location : United States







Related Discussions:- Incremental costs as relevant costs, Assignment Help, Ask Question on Incremental costs as relevant costs, Get Answer, Expert's Help, Incremental costs as relevant costs Discussions

Write discussion on Incremental costs as relevant costs
Your posts are moderated
Related Questions
Describe the meaning and relevance of interdependence of variances when reporting to managers.

2012                     2011 Cash                               12200                 17700 Acct receivable                  25200                  22300 Investments

The enhancing qualitative characteristic of understandability means that information should be understood by a those who are experts int eh interpretation of financial informat

(a) Calculate Mexico's producer surplus and consumer surplus in autarky. (b) Calculate the number of Mexican imports with as well as without the Tarriff. (c) Calculate Mexico

Bentley Plastics Ltd. Has annual fixed cost of $450,000, variable costs of $15 per unit and a contribution rate of 40% a.    What annual revenue is required to break even? b.

Under the average cost method the average cost of goods held in stock is recalculated after each receipt. An issue after the receipts is made at the recalculated average prices. A

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month                 Issues published              Total cost May

Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number


Functional Classification of Costs Beneath this classification, costs are classified according to the function they execute in an organization.  Costs can functionally be clas