Incremental Decision Making
Incremental decision making is technique used by managers to know the true
cost difference between alternatives. It is a process used to identify the financial
data that is relevant to the alternatives and financial data that c
A budget is a quantitative expression on a plan of action. Budgeting is a plan on how an
organization is going to obtain and use resources over a specific period of time. Budgeting is
necessary in planning and controlling. Planning is goal setti
1. What conceptual errors, if any, were made in preparing income statement above?
Period costs and product costs are separated in making the income statement; product cost
should not be under operating expenses of the Income Statement. Product costs like
Activity Based Costing
Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical
manner than the traditional approach of simply allocating costs on the basis of machine hours.
Activity based costing first assigns cost