Other Analytical Purposes

fickernuit's version from 2016-02-18 09:19

Section 1

Question Answer
Difference between two alternativesRelevant/differential
Will not affect decision makingIrrelevant
Additional cost of one alternative over anotherIncremental
Decrease in cost due to decisionDecremental
Already incurred, irrelevantSunk
Benefits and advantages rejected/foregoneOpportunity
Extra cost per additional unitMarginal
Adds value to the productValue added
Hypothetical representation of usage valueImplicit/imputed
Requiring current/future cash disbursementOut of pocket
Dependent on discretion of managerDiscretionary
Incurred due to past decision, contract or government regulation Committed
Will not continue if ongoing operation is charged Avoidable
Remains in computation regardless of decisionUnavoidable
Current market priceReplacement
Incurred during plant shutdownShutdown/standby

Section 2

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