ACCT 2101 Chapter : ACCT Chapter 7 Notes
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Disclaimer: these teaching notes are not intended to used as a substitute for the content of the text. They should also not be construed as encompassing the complete body of knowledge required for successful completion of this course. Incremental approach decisions involve a choice among alternative courses of action. (cid:0) (cid:0) Identify the financial data that change under alternative courses of action. Identifies the probable effects of those decisions on future earnings. Relevant financial data costs and revenues that differ across alternatives should be the only factors to be considered. Opportunity costs the lost benefit that occurs from choosing one alternative over another. Sunk costs costs that have already been incurred and will not change or be avoided by any future decision. (not relevant) Capacity = total # of units you can make b. c. Fixed only relevant if they change d. Accept if pos. c c i a t p y a c i t y.
