管理会计英文讲义 6 Incremental Analysis.pdf

IncrementalAnalysis

Chapter21

PowerPointAuthors:

SusanCoomerGalbreath,Ph.D.,CPA

CharlesW.Caldwell,D.B.A.,CMA

JonA.Booker,Ph.D.,CPA,CIA

CynthiaJ.Rooney,Ph.D.,CPA

McGraw-Hill/IrwinCopyright©2012TheMcGraw-HillCompanies,Inc.

IncrementalAnalysis

Toexplainwhatmakesinformationrelevanttoa

particularbusinessdecision.

Todiscusstherelevanceofopportunitycosts,sunk

costs,andout-of-pocketcostsinmakingbusiness

decisions.

Touseincrementalanalysisincommonbusiness

decisions

Todiscusshowcontributionmargincanbemaximized

whenonefactorlimitsproductivecapacity.

Toidentifynonfinancialconsiderationsandcreatively

searchforbettercoursesofaction.

1-2

TheChallengeofChanging

Markets

Productmarketscanchangequicklyduetocompetitor

pricecuts,changingcustomerpreferences,and

introductionofnewproductsbycompetitors.

Managersmustmakeshort-rundecisions,withafixed

setofresources,toreacttothechangingmarketplace.

SpecialProductMakeSell,Scrap,Joint

ordermixorbuyorRebuildproduct

decisionsdecisionsdecisionsDecisionsdecisions

21-3

LearningObjective

Toexplainwhat

makesinformation

relevanttoa

particularbusiness

decision.

LO1