MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
Question
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Chapter 1, Problem 1.10E

1.

To determine

Concept Introduction:

Differential cost: It is a cost that depicts the dissimilarity between the costs of two different alternatives. The alternative is related to modify in output levels.

Incremental cost: It is supposed to be an extra cost increased by the production of an extra unit of a product or a service.

Sunk cost: When a cost has already been collected and nothing can be recovered from it, it is called sunk cost.

The Incremental manufacturing cost incurred if there is an increase of production from 20000 units to 20001 units.

2.

To determine

Concept Introduction:

Differential cost: It is a cost that depicts the dissimilarity between the costs of two different alternatives. The alternative is related to modify in output levels.

Incremental cost: It is supposed to be an extra cost increased by the production of an extra unit of a product or a service.

Sunk cost: When a cost has already been collected and nothing can be recovered from it, it is called sunk cost.

To determine: The Incremental manufacturing cost incurred if there is an increase in production and sales from 20000 units to 20001 units.

3.

To determine

Concept Introduction:

Differential cost: It is a cost that depicts the dissimilarity between the cost of two different alternatives. The alternative is related to modify in output levels.

Incremental cost: It is supposed to be an extra cost increased by the production of an extra unit of a product or a service.

Sunk cost: When a cost has already been collected and nothing can be recovered from it, it is called sunk cost.

To determine: The incremental manufacturing cost if units sold to a new customer are 200 units.

4.

To determine

Concept Introduction:

Differential cost: It is a cost that depicts the dissimilarity between the cost of two different alternatives. The alternative is related to modify in output levels.

Incremental cost: It is supposed to be an extra cost increased by the production of an extra unit of a product or a service.

Sunk cost: When a cost has already been collected and nothing can be recovered from it, it is called sunk cost.

To determine: The incremental selling and administrative cost per unit, if units sold to a new customer are 200 units.

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