Pick one of the questions below. Explain your response in a paragraph or two.
1. Identify types of decisions that can be made using differential analysis.
2. What is a committed fixed cost? Give some examples.
3. What is a discretionary fixed cost? Give some examples.
4. Give an example of a fixed cost that might be considered committed for one company and discretionary for another.
5. What is the disadvantage of a company having all committed fixed costs? Explain.
6. What is an opportunity cost? Give some examples.
7. What essential feature distinguishes the contribution margin income statement from the traditional income statement?
"Differenial Analysis Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. Identify types of decisions that can be made using differential analysis.
2. What is a committed fixed cost? Give some examples.
3. What is a discretionary fixed cost? Give some examples.
4. Give an example of a fixed cost that might be considered committed for one company and discretionary for another.
5. What is the disadvantage of a company having all committed fixed costs? Explain.
6. What is an opportunity cost? Give some examples.
7. What essential feature distinguishes the contribution margin income statement from the traditional income statement?
"Differenial Analysis Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0