Incremental Benefits and Sunk Costs

Related BrainMass Solutions

• Integrative Problem - Caledonia Project

  Should we be interested in incremental cash flows, incremental profits, total free cash flows, or total profits? 2. How does depreciation affect free cash flows? 3. How do sunk costs affect the determination of cash flows? 4.

• Capital budgeting sunk costs dispose assets impact cash flow

  If the alteration was already done, it is part of sunk costs and is not included. If the alteration is still pending and will be done as part of the new investment, only the incremental cost of the alteration is included. 2.

• Incremental analysis and project addition

  The solution provides a incremental analysis and project addition.

• Multiple choice - Accounting Problems

  b) The difference in total costs between two alternatives is referred to as the: 1 direct cost. 2 incremental cost. 3 sunk cost. 4 opportunity cost.

• Cost definition

  136166 Various cost definition Describe the various terms dealing with costs(direct,indirect,sunk,fixed,variable.etc). Opportunity, Fixed, Variable, and Sunk Costs are functions of accounting rules.

• Managerial Economics: Relevant Costs

  Guided Response: Can you think of a recent example where you had to evaluate the incremental costs and benefits of different options in order to make a decision?

• Management accounting: Morgan Co, Sweet Shoppe Creamery

  Incremental costs and incremental revenues. B. Differential costs and opportunity costs. C. Differential costs and sunk costs. D.

• Economic Cost Types

  c) Incremental cost is the cost that can change due to different decisions being made. Sunk costs are costs that cannot be changed or recovered and that have already been incurred.

• What is incremental analysis? Provide an example, using numbers, of how incremental analysis might be used to make business decisions.

  True-cost is when managers eliminate sunk costs (past costs that are irrelevant at the time because money has already been spent).