In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the case where the plant has excess capacity? O incremental fixed costs and variable costs O incremental fixed costs only Ovariable costs only O incremental fixed costs and sunk costs Ovariable costs and sunk costs
In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the case where the plant has excess capacity? O incremental fixed costs and variable costs O incremental fixed costs only Ovariable costs only O incremental fixed costs and sunk costs Ovariable costs and sunk costs
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...
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![In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the
case where the plant has excess capacity?
O incremental fixed costs and variable costs
O incremental fixed costs only
Ovariable costs only
O incremental fixed costs and sunk costs
Ovariable costs and sunk costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd37bdf62-bbe2-4ade-9eb2-63b936e196ae%2Fb28d7ddb-6d56-41fb-8a39-955db9777665%2F4xi59la_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In calculating the incremental costs of making a component part in-house, the firm should consider which costs in the
case where the plant has excess capacity?
O incremental fixed costs and variable costs
O incremental fixed costs only
Ovariable costs only
O incremental fixed costs and sunk costs
Ovariable costs and sunk costs
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