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
contribution per unit 8 fixed cost=800.find B.E.P?

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti

What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost? What does this suggest about the importance of supply chain managem

Limitations of abc analysis

Slash and Burn is a monopolist that can sell its output at these prices and with these total costs:                    Output             Price        Total Cost

DIFFERENTIAL COSTING Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc informati

I need an explanation of how a bin card is done

Three oligopolists, A, B and C, produce an identical product, Q. Q is produced under conditions of constant costs, that is, AC = MC = $100. The market demand schedule for Q is:

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Choice of Budget Flexing Basis The most suitable flexing basis must be considered where it assists in the comparison of alternative budget data at the planning stage and for