1.
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
2.
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.
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.
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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