Analysis of the incremental revenue and the incremental costs incurred when one decision alternative is chosen over another.
What is Incremental Analysis?
100
Already incurred and are not reversible.
What is sunk cost?
100
This is when two or more products always result from common inputs.
What are joint products?
100
TOC
What is the Theory of Contraints?
100
Planning, control, and decision making.
What is the primary goal of managerial accounting.
200
Additional revenue received as a result of selecting one decision alternative over another.
What is Incremental Revenue?
200
Cost that can be avoided if a company takes a particular action.
What is avoidable costs?
200
Costs of common inputs.
What are joint costs?
200
1. Identify trhe Binding Constraint
2. Optimize Use of the Constraint
3. Subordinate Everything Else to the Constraint
4. Break the Constraint
5. Identify a New Binding Constraint
What is the Five-Step Process of TOC?
200
The financial plans prpeared by managerial accountants are referred to this.
What is a budget?
300
Is the additional cost incurred as a result of selecting one decision alternative over another.
What is Incremental Cost
300
The values of benefits foregone by selecting one decision alternative over another.
What are opportunity costs?
300
This is the stage of which production of individual products are identified.
What is split-off point?
300
Produce products with the highest contribution margin per unit of the constraint.
What is Optimize Use of the Constraint?
300
Report used to evaluate the performance of managers and the operations they control.
What are performance reports?
400
Incremental costs are sometimes referred to as _____
What are relevant costs?
400
ASO
What is Avoidable, Sunk, and Opportunity Costs?
400
A method of allocating joint costs in which the allocation is based on the relative sales value of the products at the split-off point.
What is the relative sales value method?
400
Performance measures drive the ehavior of managers.
What is You Get What You Measure?
400
Costs that increase or decrease in proportion to increases or decreases in the level of business activity.
What is are Variable Costs.
500
1. The decision to enage in additional processing of a prodcut.
2. The decision to make or buy a product.
3. The decision to drop a product line.
What is analysis of decisions faced by managers?
500
1. Depreciation on equipment already purchased.
2. President's salary, which will not change for either action taken.
3. Salary of supervisor who will be retianed if action 1 is taken and fired if action 2 is taken.
What are the fixed costs?
500
Product =- Sales value of #1/Sales value of #1 + #2 x joint cost
What is the formula for relative sales value method?
500
These are often more important than costs and benefits that are easy to quantify.
What are Quantitative Factors?
500
Involves the calculation of the difference in revenue and the difference in cost between decision alternatives.