Define incremental cost, opportunity cost, and sunk cost. How do these costs impact decision-making? “Variable costs and incremental costs are essentially the same in decision-making.” Do you agree or disagree. “All future costs are relevant costs in decision-making.” Do you agree or disagree. From a decision-making point of view, should joint costs be allocated among joint products? Why or why not? Explain how relating product contribution margins to the amount of the constrained resource they consume help a company maximize its profits?

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Q: Three major influences on pricing decisions are​ ________.   A. continuous​ improvement, customer​…

A: Price is the cost of product to the ultimate customers, hence it needs to be decided in such manner…

Q: Can a company use a target pricing model without a follow-on cost-savings sharing agreement? Why or…

A: Target price is the price at which the stock future price is estimated grounded on earnings…

Q: What are the challenges of using the incremental cost allocation method when allocating common costs…

A: Cost Allocation Method:   The cost allocation method is the method by which the costs to be assigned…

Q: What is variable costing? How does it differ from absorpotion costing? Which can better be used to…

A: Variable Costing is a costing method where variable expenses change in proportion with production.…

Q: What is the relevant range? What role does the relevant range concept play in explaining how costs…

A: Relevant range refers to the level of the activity which represents the maximum and minimum limits…

Q: Is there a difference between relevant costs and incremental costs? Explain

A: Relevant cost: Relevant cost is the cost which is relevant in decision making of a project, and…

Q: Why cant prime cost be added to conversion cost to get total product cost?

A: Product Costs: Product costs are the costs that are incurred to produce a product or providing a…

Q: Why is it important to keep track of both direct and indirect costs? How do these costs effect…

A: (a )If we keep a tracking record of direct and indirect costs we can determine the firm's…

Q: Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.

A: Cost-volume-profit (CVP) analysis represents the method of cost accounting that shows the impact…

Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…

A: cost volume profit analysis (CVP analysis) is used to determine many factors such as 1)desired…

Q: In incremental analysis, only relevant costs are considered when making a decision among…

A: These are the cost that are specific, pertinent and relevant to a particular decision making of…

Q: ivity analysis, and how is it used with cost driver analysis to manage costs and increase profits?…

A: An organization might use activity analysis as a management tool to recognize and comprehend the…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: “Variable costs and differential costs mean the same thing.” Do you agree? Explain

A: Differential cost:   The difference between the costs of two alternatives is considered as a…

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: From a decision-making point of view, should joint costs be allocated among joint products?

A: Joint products means products which use the same resources and are made in the same process. For…

Q: Which of the following best describes an "opportunity cost"? Group of answer choices costs that were…

A: Opportunity cost is the loss of the benefit which is forgone to choose the best possible…

Q: in IN YOUR OWN WORDS what "sell or process decision" is AND MUST USE EXAMPLES IN YOUR DESCRIPTION.

A: To check whether to use relevant cost in sell or process decision are effiecrive or not.

Q: what is the definition of fixed, variable, and mixed costs? Are variable costs or fixed costs easier…

A: Introduction: Cost accounting is a type of managerial accounting that capture a firm's production…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.