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DIFFERENTIAL COSTING
Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc information where only cost and income differences between alternate courses of action are taken into consideration'. Therefore, while decision making; only an option with overall gain are selected. The term 'differential cost' means the gross increase or decrease in total costs resulting from a difference in production. The differential cost is known as 'incremental cost' while the cost increases and 'decremental cost' while the cost decreases.
Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made. Assuming no other cost savi
Year Ending April 2009, 2009 April 30, 2008 Net Sales $10,148,082 $10,070,778 Accs Receivable 1,171,797 1,161,481 Assume that the accounts receivable (in thousands) were $996,852 a
Overhead Costs Introduction Overhead costs may be defined like the net cost of indirect materials, indirect expenses and indirect labour. They may happen or be charged to
Relationship between Cost Accounting and Business Enterprise Cost accounting, like will be mentioned later to adopts a cost center approach to accounting for costs. A cost cen
Evaluate the discounted mean term (DMT) of a bond redeemable at $120 nominal in 15 years time with annual coupons of 7% (based on a nominal bond of $100) at interest rates of 6% ,
PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity
Master Budget Framework The master budget is the overall quantifications of the budgeting plan. In this, functional budgets are not corporate. A functional budget is a budget
#question.ABC Corportaion produces and sell two products. In the most recent month, Product 123 had sales of $33,000 and variable expenses of $15,840. Product 245 had sales of $42,
what is the importance and assumptions of application of marginal costing
The following information is for the third quarter of this year: Planned Actual Production 92,000 units 87,000 units Direct labor hours 506,800 DL hrs 380,000 DL hrs Fixed manuf
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