CHAPTER 21
INCREMENTAL ANALYSIS
OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL
THINKING CASES
Brief
Exercises
B. Ex. 21.1
B. Ex. 21.2
B. Ex. 21.3
B. Ex. 21.4
B. Ex. 21.5
B. Ex. 21.6
B. Ex. 21.7
B. Ex. 21.8
B. Ex. 21.9
B. Ex. 21.10
Topic
Using average unit costs
Make or buy
Joint cost allocation
Outsource a product
Opportunity costs
Identifying costs
Allocating productive capacity
Match decision and relevant costs/revenues
Sell at split-off or process further
Scrap or rebuild
Learning
Objectives
1, 3
2–4
1, 2, 4
2, 4, 5
2
2
4
1, 3, 4
2–4
2–4
Skills
Analysis
Analysis, judgment
Analysis, judgment
Analysis, judgment
Analysis
Analysis, judgment
Analysis
Analysis
Analysis
Analysis
21.4
21.5
Learning
Topic
Objectives
Skills
Accounting terminology
1–5
Analysis
1, 2
Analysis, communication,
Real World: Home Depot
Incremental, sunk, and opportunity costs
judgment
Incremental analysis: Accepting a special
1–3
Analysis
order
Scarce resources
1–4
Analysis
Special order decisions and opportunity costs
1–4
Analysis
21.6
21.7
21.8
21.9
21.10
Incremental analysis: Make or buy decision
Make or buy decision
Sunk costs: Scrap or rework decision
Scarce resources
Joint products
1–4
1–4
1–4
1–4
1–4
Analysis
Analysis
Analysis
Analysis
Analysis, communication,
judgment
21.11
21.12
21.13
21.14
21.15
Joint processes: Sell or process further
Pricing a special order
Evaluating a special order
Scarce resources
Real World: Home Depot’s charitable
contributions
1–4
1–3
1–3
1–5
1–3
Analysis
Analysis, judgment
Analysis
Analysis, judgment
Analysis, communication,
research
Exercises
21.1
21.2
21.3
© The McGraw-Hill Companies, Inc., 2012
CH21-Overview
Problems
Sets A, B
21.1 A,B
21.2 A,B
21.3 A,B
21.4 A,B
Topic
Evaluating a special order
21.5 A,B
21.6 A,B
Make or buy decision
Make or buy decision
Determining the...