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Dear Mr. John Moffat
My query is about the statement after 15:55 mins
https://www.youtube.com/watch?v=kbUtass1rps&list=PL0CFBE18FFA0F900E&index=10&feature=plpp_videoIn this video after 15:55 mins the lady has mentioned : *** ” there are also fixed cost which or not incremental which have not been considered”***
Why should I be considering Fixed cost which are not incremental as a result of making the decision?
Fixed cost are committed cost and therefore irrelevant in decision making are they not?
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Incremental fixed cost is relevant in decision making, additional fixed cost as a result of decision being taken is relevant
The point she is making is that in practice it is not always so clear cut as to whether there are extra fixed costs or not.
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