Fuck Flashcards
Cost that is in the future and differs between alternative actions
Relevant information
Financial and non financial
Relevant information
Potential benefits foregone by choosing one alternative over another
Opportunity cost
Any cost that has been previously incurred and cannot be changed by a future decision
Sunk cost
Difference between the revenues/costs between two alternatives.
Differential revenue/cost
Additional cost of selecting one alternative over another
Incremental costs,
Price taker
Price setter
Price decisions
Heavy competition
Standard product (no unique)
Use target costing (work backward from price)
Price taker
Low competition
Unique product
Use cost plus pricing
Price setter
Time spent making the product beginning with when production begins until the product is shipped to the customer.
Throughput time
Non-value added time that begins when the order is taken and ends when production begins
Wait time
Value added
