Sell or process-further decision: The purpose of sell or process-further decision is to choose an appropriate alternative that maximizes the operating income. It uses incremental analysis which determines the incremental revenue. Incremental revenue refers to the difference in the total revenue earned when the product or service is sold at split-off point and the total revenue earned when the product or service is sold after further processing. If the incremental revenue is more than the incremental costs, the product should be sold after further processing. If the incremental revenue is lesser than the incremental costs, the product should be sold at split-off point. To discuss: The products which Corporation A should make.
Sell or process-further decision: The purpose of sell or process-further decision is to choose an appropriate alternative that maximizes the operating income. It uses incremental analysis which determines the incremental revenue. Incremental revenue refers to the difference in the total revenue earned when the product or service is sold at split-off point and the total revenue earned when the product or service is sold after further processing. If the incremental revenue is more than the incremental costs, the product should be sold after further processing. If the incremental revenue is lesser than the incremental costs, the product should be sold at split-off point. To discuss: The products which Corporation A should make.
Solution Summary: The author explains the purpose of sell or process-further decision, which is to choose an appropriate alternative that maximizes the operating income.
The purpose of sell or process-further decision is to choose an appropriate alternative that maximizes the operating income. It uses incremental analysis which determines the incremental revenue.
Incremental revenue refers to the difference in the total revenue earned when the product or service is sold at split-off point and the total revenue earned when the product or service is sold after further processing.
If the incremental revenue is more than the incremental costs, the product should be sold after further processing. If the incremental revenue is lesser than the incremental costs, the product should be sold at split-off point.
To discuss: The products which Corporation A should make.
Juan Leon Martinez posted Apr 7, 2025 11:25 AM Subscribe
Hello everyone,
Esteban is not performing in a professional manner in this scene. In fact, he is
showing extreme unprofessional manners and unethical work ethic. Under no
circumstance should he be using a company's tools or assets for his own benefit.
You can also see he is trying not to get caught by any upper management due to
him doing these actions after hours of work.
As a manager, a great change I would do differently to make sure Esteban is not
using the company's assets for their own benefit, would be coachings and sit
down conversations. A sit down conversation can have the employee get an idea
on how bad his actions are towards the company. This disciplinary of a coaching
would be a written down statement from both manager and employee stating that
he or she understands the actions they have done, which could lead to suspension
or possibly termination.
These unethical actions could lead to a great deal of financial loss…
how much more money can the bank create? accounting question
what is the correct option
Chapter 7 Solutions
Managerial Accounting: Tools for Business Decision Making