ACC206B Ch. 6
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what is differential analysis?
a process that compares revenues and costs of different decisions.
What is the purpose of the Make or Buy decision process
To determine if the product should be from an outside supplier, or from your own company
what is a usual cost from buying from an outside supplier
facilities in your company are idle - still some fixed costs, but not as many.
What is the usual purpose of Deletion or Addition of Products, Services, or Departments?
keeping/not having the above mentioned could be bad/good for overall company profits.
What is the reason for Sell or Process further?
Determing if better profit can be made by further processing of a product.
What is the split off point
The point where joint products become individually identifiable
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