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
The next year's budget for Benny, Inc., is given below: Product 1 & 2 Sales $945,000 & 688500 Variable costs 459,900 & 297,000 Fixed costs 300

Role of Cost Accounting in Organization Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist deci

Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sa

ACRS is a system of depreciation started by the Economic Recovery Tax Act of 1981. ACRS depreciation relies on recovery periods in spite of useful life. These periods were preset b

describe the procedures involved in payroll labour cost accounting

Behavioural Aspects of Standards Budgets and Standards rely heavily on the people who have to work to meet them. Since the detailed nature of standard costing and its involvem

Determine the Absorption Rate of Overheads The budgeted production overheads and other budgeted data of compute are given as: Budget Overhead cost for the period = Ks

SD manufactures and sells a small range of timber based  products. The main differences b/w the products are their size and the type of timber they used. SD prepares annual budgets

need help with master budget

Activity Based Costing or ABC Absorption costing shows to be relatively straightforward way of adding overhead costs to units of production utilizing, more often than not, a v