Chapter 10 Flashcards
1
Q
What are Relevant Costs
A
Future Costs that differ among the alternatives you have to choose from
EX: If you go to college, you will have to buy books. If you do not go to college though, you will not have to buy books
2
Q
What are two reasons the Incremental Analysis Approach is used?
A
- saves time
- focuses on what costs are relevant
3
Q
What does Idle Capacity mean?
A
Company has materials left over
FC will not change
4
Q
The ___ is the point in manufacturing where joint products can be recognized as separate products
A
Split-off point
5
Q
When a company has constraints on manufacturing, what are 5 ways to over this problem?
A
- hiring subcontractors
- work overtime
- shift more workers to process that are bottlenecks
- invest in additional equipment
- Process improvements
*bottlenecks are newbies
