Differential Costs – NBC Institute

PM – May 2018 – L2 – Q3a – Cost-Volume-Profit (CVP) Analysis

Explain the different concepts of relevant costs in the context of decision-making.

Question

In the context of relevant costs, explain the following:
i. Incremental costs;
ii. Differential costs;
iii. Avoidable and unavoidable costs;
iv. Committed costs;
v. Sunk costs; and
vi. Opportunity costs.

Answer

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Tags: Avoidable Costs, Differential Costs, Incremental Costs, Opportunity Costs, Relevant Costs, Sunk Costs
Level: Level 2

Topic: Decision-making techniques
Series: MAY 2018

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PM – May 2018 – L2 – Q3a – Cost-Volume-Profit (CVP) Analysis

Explain the different concepts of relevant costs in the context of decision-making.

PM – May 2018 – L2 – Q3a – Cost-Volume-Profit (CVP) Analysis

Explain the different concepts of relevant costs in the context of decision-making.

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Question Tag: Differential Costs

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PM – May 2018 – L2 – Q3a – Cost-Volume-Profit (CVP) Analysis

Explain the different concepts of relevant costs in the context of decision-making.

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PM – May 2018 – L2 – Q3a – Cost-Volume-Profit (CVP) Analysis

Explain the different concepts of relevant costs in the context of decision-making.

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