Irrelevance of Future Cost Subject: Accounting Irrelevance of Future Cost: In addition to pat cost, some future costs may be irrelevant because they will be the same under all feasible alternatives. Irrelevant Cost is an avoidable cost is a cost that…
Incremental Cost Subject: Accounting Incremental cost can be defined as the encompassing changes experienced by a company within its balance sheet because of tint additional unit of production. It is the increase in total costs resulting from an increase…
Split-off-Point Subject: Accounting Split-off-point: The split-off point is the point in a production process where jointly manufactured products are henceforth manufactured separately; thus, their costs can be identified individually after the split-off point. A split-off point is a…
Joint Product and Joint Cost Subject: Accounting Joint Product and Joint Cost Joint product: Two or more outputs generated simultaneously, by a single manufacturing process using common input, and being substantially equal in value. Joint products (such as butter. cheese, and cream…
Product Costs Subject: 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 costs consist of direct material, direct labor, and manufacturing overhead.…
Segment Margin in Product Line Subject: Accounting 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 amount of income that has been earned by the particular…
Difference between Relevant Cost and Irrelevant Cost Subject: Accounting 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 must be a future expected cost that differs between alternatives.…
Irrelevant Cost Subject: Accounting 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 are those that will not change in the future when…
Relevant Cost Subject: Accounting 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 between alternatives. Relevant costs are those costs that will make…
Special Sales Order Subject: Accounting 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 be charged. It is a unique one-time order made by…