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Brian Kirksey
on Oct 14, 2024

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Part of the decision to accept additional business should be based on a comparison of the incremental (differential)costs of the added production with the additional revenues to be received.

Incremental Costs

Costs that change depending on the level of production or an alternative course of action.

Additional Revenues

Extra income generated from sources outside of the company's main business operations.

  • Comprehend the underlying tenets governing decisions on whether to manufacture in-house or purchase externally, as well as for special orders.
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Rawan AlmutairyOct 19, 2024
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