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Hi sir,
Could you please explain why incremental budgeting is appropriate when Applied to stationary costs but not for production costs ?
Thanks in advance
That is certainly not a general rule. Incremental budgeting applies to everything but the extent to which it is affects the figures depends on the information in the question (the most obvious reason being as to whether they are fixed or variable costs).
If you refer to a specific past exam question (or a question in the BPP Revision Kit) then I can explain more in respect of the specific question.
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