ACCT 2101 Study Guide - Midterm Guide: Cost Driver, Ideal Standard, Sunk Costs
Document Summary
Acct 2101 exam 2 super guide: concepts, incremental analysis decisions involve a choice among alternative courses of action, identify the decision alternatives. Only consider relevant costs: variable always relevant & change (dm, dl, moh, fixed only relevant if they change. Qualitative issue could impact long term pricing decisions. Balance of offer price $ accept if + reject if - Acct 2101 exam 2 super guide: make or buy these decisions are commonly referred to as insourcing verses outsourcing. The difference column tells you whether you will make or lose money. Qualitative issue(s: packaging standards, supplier reliability, demand for product, future pricing increases, keep or drop (continue or discontinue) a segment look at profitability of the segment. Acct 2101 exam 2 super guide: keep - if segment (division) margin is positive (can still absorb other corporation allocated costs, dispose if segment (division) margin is negative continues to drain income of the corporation.
