Accounting

Product costs: For financial accounting purpose, products costs are that are involved in acquiring or making a product. In the case of manufactured goods, these…

Segment Margin in Product Line Segment margin is the difference between the revenue of a segment and the direct costs of the segment represents the…

Difference between Relevant Cost and Irrelevant Cost Relevant Cost is a cost that is pertinent to the decision being made. To be relevant, a cost…

Irrelevant Cost: An avoidable cost is a cost that can be eliminated in whole or in part by choosing one alternative over another. These costs…

Relevant Cost: A cost that is pertinent to the decision being made. To be relevant, a cost must be a future expected cost that differs…

Special sales order: Managers must often evaluate whether a special sales order should be accepted, and if the order is accepted, the price that should…

Sunk Cost is a cost that has already been incurred and thus cannot be recovered. It should not be considered when making the decision to…

Opportunity Cost enters into your decision-making criteria when you have several options to consider, including spending the money on several choices of investment. It is…

Opportunity Cost is the cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you…

The Margin of Safety Ratio useful in planning business operation – In break-even analysis, the margin of safety is the extent by which actual or…