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Misha Larkins [42]
3 years ago
10

Differential analysis can aid management in making decisions on a variety of alternatives, including whether to discontinue an u

nprofitable segment and whether to replace usable plant assets. Group of answer choices True False
Business
1 answer:
Yakvenalex [24]3 years ago
5 0

Answer:

The correct answer is:  True.

Explanation:

The differential analysis, also known as incremental analysis, is an accounting and managerial technique used to evaluate <em>changes in revenue, costs, </em>and<em> profits </em>in order to make decisions about them without the need of writing complete income statements.

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A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165
Simora [160]

Answer:

$81,000

Explanation:

The computation of the incremental profit (loss) from accepting the order is shown below:

Contribution per unit = $165 - $75

= $90

Now

Loss on contribution for giving up regular sales  is

= $4,100 × 90

= $369,000

Now Incremental contribution for special order is

= ($135 - $75) × 7,500

= $450,000

So,  

Incremental profit is

= $450,000 - $369,000

= $81,000

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The accounts that will be used to record the disposal of the assets are Gain/loss on sale of asset and Sales Income

<h3>What is a disposal account?</h3>

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Hence, the account that will be used to record the disposal of the assets is Gain/loss on sale of asset and Sales Income

Read more about assets disposal

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Capital budgeting is concerned with making and managing expenditures on:________
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Answer:

on your goal or achievement

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_____ describes how the owner and employees think, feel, and act as a business
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