Tag Archives | Cost Analysis

Top 9 Cost Concepts used in Decision Making

The following points highlight the top nine cost concepts used in decision making. The cost concepts are: 1. Marginal Cost 2. Out of Pocket Costs 3. Differential Costs 4. Sunk Costs 5. Opportunity Cost 6. Imputed Costs 7. Replacement Cost 8. Avoidable Cost and Unavoidable Cost 9. Relevant Cost and Irrelevant Cost. Decision Making: Cost Concept # 1. Marginal Cost: [...]

By |2016-06-18T06:58:42+00:00June 18, 2016|Cost Analysis|Comments Off on Top 9 Cost Concepts used in Decision Making

Top 7 Applications of Differential Cost

The following points highlight the top seven practical applications of differential cost. The practical applications are: 1. Determination of the most Profitable Level of Production and Price 2. Acceptance of Offer at a Lower Price or Offering a Quotation at Lower Selling Price in Order to Increase Capacity 3. Accept or Reject Decisions 4. Make or Buy Decisions 5. Sell [...]

By |2016-06-18T06:58:42+00:00June 18, 2016|Cost Analysis|Comments Off on Top 7 Applications of Differential Cost
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