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Management Accounting > Differential Analyis > Flashcards

Differential Analyis Flashcards

1
Q

Non- relevant Cost

A
  1. Sunk Cost
  2. Historical Cost
  3. Fixed Unavoidable Cost
  4. Common & Joint Cost
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2
Q

Utilisation of Constrained resource

A

CM/u divide by time taken per unit = CM/unit time

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3
Q

Make or Buy Analysis

A

Cost of making vs cost of buying
lower cost wins

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4
Q

Continue or Drop Analysis

A

CM if continue vs if dropped
Compare, higher CM wins

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Management Accounting (10 decks)

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