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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Further processing decision
Hlo sir
In the question of further processing decision, If there is loss during the process then the sales units after further processing will be impacted but the units of incremental cost isnot impacted yeah sir
Please do reply fast
Exam is tomorrow
So if there is a loss during the process, the sales units after further processing will indeed be affected. However, the units of incremental cost remain unchanged. Incremental costs refer to the additional costs incurred as a result of the decision to further process the product.
Therefore, while the sales revenue may decrease due to losses, the incremental costs associated with that decision do not change.