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weekly notes RETL 262

by: Ali Boehnlein

weekly notes RETL 262 RETL 262 001

Ali Boehnlein
GPA 3.9
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About this Document

the last pieces of chapter 25 before exam 3
Functional Accounting II
David Tate
Class Notes




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This 1 page Class Notes was uploaded by Ali Boehnlein on Thursday April 14, 2016. The Class Notes belongs to RETL 262 001 at University of South Carolina taught by David Tate in Spring 2016. Since its upload, it has received 44 views. For similar materials see Functional Accounting II in Retail at University of South Carolina.


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Date Created: 04/14/16
Class Notes from Week 15 (examples not listed) Types of costs Sunk­ incurred in the past, cannot be reversed Out of pocket­ about to be incurred/planned for the future, can be stopped Opportunity­ potential benefits given up by choosing one option over another Make v. buy Is it cheaper to make the product yourself? Is it cheaper to outsource and buy from an accredited company? Ex. Airplanes Scrap v. rework Scrap­ a product that was made incorrectly/has missing pieces Rework­ a broken/scrap item that can be salvaged and resold at a higher value Cost­ should be recovered through the sale of the reworked item Incremental sales > incremental costs = GOOD Segment elimination­ segment could be eliminated from production if its revenues do not  outweigh its cost of production, look for products with better margin Sales mix­ a company who sells a variety of products, always has a few products with better  margins How to determine­ check contribution margin, check the resources/facilities, check the  demand Relevant costs­ applicable to a particular decision, have influence on the future success,  opportunity costs apply (gain if chosen, avoided if not chosen)


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