Explain why other costs or revenues are not included

Assignment Help Accounting Basics
Reference no: EM13137477

Differential Analysis uses only the components of a decision that "differ" when making a determination as to whether to choose one option over another. For example only the difference in labor costs or materials costs are considered, as well as only the difference in revenue generated for each option. Explain why other costs or revenues are not included when making decisions using differential analysis.

Reference no: EM13137477

Questions Cloud

Applying the book value method : The total unamortized bond discount at the date of conversion was $1,000,000. In applying the book value method, what amount should Morgan credit to the account "paid-in capital in excess of par," as a result of this conversion?
Crisis management-business action planning : Why are crises inevitable? How can a manager manage a crisis after failure has already occurred? How can a general framework for crisis management apply to particular organizations?
What is amount of cash that shin company receives today : Shin Company has a loan agreement that provides it with cash today, and the company must pay $25,000 4 years from today. Shin agrees to a 6% interest rate. The present value factor for 4 periods, 6% is 0.7921. What is the amount of cash that Shin..
What is the normal procedure for handling the collection : What is the normal procedure for handling the collection of accounts receivable previously written off using the direct write-off method? Using the allowance method?
Explain why other costs or revenues are not included : Explain why other costs or revenues are not included when making decisions using differential analysis.
What will the final mixture contain : what will the final mixture contain if 14.0 g of N2 and 35.5 g of Cl2 react to completion and the balanced equation is: N2+3Cl2--->2NCl3
Explain what are the knot values : What are the knot values? How many different curves is the B-spline curve composed of? Expand the B-spline curve equation to get the separate equations of the curves in b.
Explain the meaning of cultural competence. : Explain the meaning of cultural competence. How can you describe the cultural competence at your work?
Annual straight-line depreciation : Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Differences between accounting and taxable income

At December 31, 2012, Vermont Industries reported three temporary differences between accounting and taxable income:

  Effect of the intercompany sale of land

On April 1, 2003, Penny Corporation sells land to its 60%-owned subsidiary, Sahl Corporation, at a $15,000 gain. The land is still held by Sahl on December 31, 2003. What is the effect of the intercompany sale of land on consolidated net income?

  What is the budgeted dollar amount of merchandise purchases

Hanover Toy Store has budgeted sales of $48,000 for its electronics department in November. Management wants to have $11,000 in electronics inventory at the end of November. The beginning inventory of electronic toys is expected to be $9,000. What..

  Journal entries-effective interest method

Compute the issue price of a $1,500,000 bond issue and prepare the journal entries for the issuance and first years' interest payments (use the effective interest method). Assume the bonds are paid semiannually (June 30 and December 31).

  Time value of money-gordon company

Gordon Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $80,000. The deposits are made at the end of each year into an account paying 5% annual interest.

  Types of collection practices

The Fair Debt Collection Practices Act has four different types of collection practices. Explain who the legislation applies to and explain the four different collection methods.

  Policies and procedure of internal control

Explain why internal control is an important aspect of an accounting system, providing at least two specific example that would be in the policies and procedure of internal control.

  Howells correct ending inventory balance

What is Howell's correct ending inventory balance at December 31, 2010?

  Market values and book values

Building an Income Statement, During the year, the Senbet Discount Tire Company had gross sales of $1.06 million. The firm's cost of goods sold and selling expenses were $525,000 and $215,000, respectively. Senbet alo had note payable of $800,000...

  What is dexter corporation tax basis for the property

Alan, Baker and Crowe formed Dexter Corporation during 2011. Pursuant to the incorporation agreement, Alan transferred property with an adjusted basis of $30,000 and a fair market value of $45,000 for 450 shares of stock.

  Evaluate the methodology for assessing the execution

evaluate the methodology for assessing the execution of a balanced scorecard system. Describe the techniques you would employ to determine the effectiveness of a balanced scorecard in your organization.

  Deduction on her individual tax return

Dawn Adams owns 60 percent of a calendar-year S corporation during 2008. Her stock basis on December 31, 2008, is $17,000, and her debt basis is $2,000. If the S corporation incurs a $48,000 loss for 2009, what amount may Ms. Adams deduct on her i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd