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What is the distinction or differences between an incremental cost and sunk cost?
incremental cost are defined as the change in overall cost that result from particular decision making. it include both fixed cost and veriable cost. sunk cost are those cost which are made once and for all can't be altered incremental or decreased by varying the rate of output, nor can they be recovered. for example - once it is decided to make incremental investment expenditure and the fund are allocated and spend
Costs that were incurred in the past which are never incremental costs are called?
sunk cost
Should financing cost be included as an incremental cash flow in capital budgeting analysis?
Incremental Cash flows are included in capital budgeting decision and if capital budgeting decisions require acquisition of money from open market then its financial cost is also relevant for decision making and it is also included in it.
What is incremental model and its disadvantages?
We can get feedback early stage then can do want changes last stage .smaller projects can manage easily and some incremental methods physically decide by others. Most of this process are divided by separate parts so the cost is will be higher .
Some examples of direct material cost and direct labor cost?
examples of dierect material,indirect,labour,and expenses cost
