DIFFERENTIAL COST ANALYSIS IN THE CONTEXT OF FURTHER PROCESSING A JOINT PRODUCT
IN THIS VIDEO I HAVE EXPLAINED, WITH ONE NUMERICAL EXAMPLE HOW DIFFERENTIAL COST ANALYSIS IS UNDERTAKEN WHEN THE MANAGEMENT FACES AN ALTERNATIVE COURSE OF ACTION IN TERMS OF FURTHER PROCESSING A JOINT PRODUCT AND SELLING THE FINAL PRODUCT AT A HIGHER PRICE. HERE INCREMENTAL COST AND INCREMENTAL REVENUES ARE COMPARED TO DETERMINE THE INCREMENTAL PROFIT.