HELP! VOCAB

Benefit foregone by choosing a particular course of action
	Often calculated as a percentage return on investment in assets
	Costs that have been incurred in the past and cant be changed
	If incremental revenue from processing exceeds the extra cost of processing further
	Not relevant when there is excess capacity
	Used by price setters
	Their products and services are not unique or branded
	Incurred only if the product line is retained
	Their products and services are unique or have little competition
	Have work performed overseas
	If the fixed costs savings exceed the contribution margin lost from a product line or department
	Contribution margin of a product line minus direct fixed costs
	Starts with the amount customers are willing to pay and subtracts the companys desired profit
12345678910111213141516	Restrict the amount of product that can be manufactured or sold
12345678910111213141516	Contract an outside company to produce a product or perform a service
12345678910111213141516	Looks at how operating income will be different under each alternative

1.	Incremental analysis
2.	Sunk costs
3.	Price takers
4.	Price setters
5.	Cost-plus pricing
6.	Target costing
7.	Desired profit
8.	Fixed costs
9.	Avoidable fixed costs
10.	Decide to discontinue
11.	constraints
12.	Outsourcing
13.	Offshoring
14.	Opportunity cost
15.	Process further
16.	Segment margin