BUAD 281 Study Guide - Final Guide: Performance Measurement, Uptodate, Deutsche Luft Hansa
20 Sep 2017
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Is it relevant: consider if benefit is available under one alternative and not the other, can be relevant without a dollar value, only those costs and benefits that differ between alternatives are. Joint product costs constrained resource: split off point the point in the manufacturing process at which the joint products can be recognized as separate products, joint costs the costs incurred up to the split-off point. Irrelevant once split off point has been reached costs are already incurred: sell of process further decision. It is profitable to continue processing a joint product after the split off point only if the incremental revenue from such processing exceeds the incremental processing cost incurred after the split off point. Budgeted rates per hour: manufacturing overhead budget, lists all costs of production other than direct materials and direct labor, budgeted moh costs = (dlh needed for production (dl budget) x variable.
